The process of destocking aluminum ingots has been hindered again, and SHFE aluminum fluctuated downward [SMM Aluminum Morning Comment]

SMM, Aug 30: Overnight, the most-traded SHFE aluminum 2410 contract opened at 19,660 yuan/mt, hit a high of 19,705 yuan/mt, a low of 19,625 yuan/mt, and closed at 19,655 yuan/mt, down 55 yuan/mt from the previous close, a decrease of 0.28%. On Thursday, LME aluminum opened at a high of $2,486.5/mt, a low of $2,450/mt, and closed at $2,466/mt, down $18/mt, a decrease of 0.72%.
Summary: On the macro front, the market has gradually digested expectations for the US Fed to ease policy next month. The market is currently focusing on Friday's Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation indicator, which may provide more clues on the rate cut in September and the pace of future easing cycles. On the fundamentals, the domestic aluminum supply side remains stable in the short term, and recent disturbances such as power rationing have not had a substantial impact on aluminum production. Downstream demand is in a slow recovery phase but still requires more end-user demand to see a significant improvement. In the short term, with the fading of favourable macro sentiment and lower-than-expected destocking on the fundamentals, bulls' confidence is insufficient, and aluminum prices are expected to maintain a fluctuating trend. Continuous attention should be paid to macro changes and the progress of the peak consumption season for end-users.