Macro Sentiment Suddenly Turns Bearish, Chinese Aluminium Market to Face Supply Shock

SHANGHAI, May 12 (SMM) - On Friday, the overall macro sentiment suddenly turned bearish again. Expectations of US interest rate hikes, the banking crisis, and debt ceiling negotiations all sent out negative signals, exacerbating the panic in the aluminium market. Domestic demand recovery still requires strong policy support.

Aluminium ingot inventory continued to fall, but the overall performance of the downstream operating rates was mediocre, causing aluminium billet inventory to grow. The domestic aluminium output maintained a slight growth trend. The cost of the aluminium industry has dropped significantly.

The output and operating rate of aluminium smelters increased in April. Driven by production resumption, the domestic operating aluminium capacity and output are expected to increase further in May.