SMM Aluminum Morning Meeting: Fed Rate Cut Uncertainty Pressures SHFE Aluminum, Inventory Trends Down

[SMM Aluminum Morning Meeting Summary: Uncertainty in US Fed Interest Rate Cut Pace, SHFE Aluminum Fell Back from Highs Last Night]

Macro front, with the easing of market inflation data, expectations for a US Fed interest rate cut in March next year have resurfaced. However, the market is weighing the prospect of relatively small rate cuts next year. The US dollar index hovered near a two-year high, putting pressure on base metals.

Inventory side, driven by low aluminum prices, pre-holiday downstream concentrated stockpiling combined with year-end supplier inventory clearance kept aluminum ingot inventory in a destocking trend.