Low Inventory Provides Support; Macro and Demand Tug-of-War Keeps Aluminum Prices Consolidating [SMM Aluminum Morning Meeting Summary]
At the macro level, hawkish tightening expectations are contending with a short-term rebound in the weak US dollar. Although there has been recent progress in the US-Iran situation and the Russia-Ukraine conflict, a final resolution has yet to be reached. On the fundamentals side, inventory destocking is providing support, but downstream processing demand is weakening and the peak season is drawing to a close, leaving fundamentals similarly mixed. In the short term, aluminum prices are expected to consolidate and adjust.