SMM Aluminum Morning Meeting: Consumption Boost Efforts, Production Cuts, Prices Fluctuate

[SMM Aluminum Morning Meeting Summary: Government Continues Efforts to Boost Consumption, Aluminum Prices Slightly Rebound]

Macro front, the Chinese government continues efforts to boost consumption, while uncertainty over the US Fed's interest rate cut pace intensifies. Fundamentals side, although multiple aluminum smelters in Sichuan and Guangxi implemented production cuts in December, and some capacity restarts were stalled, production still showed positive YoY growth. Demand side, under the off-season, market demand continued to weaken, aluminum processing industry operating rates declined steadily, and some aluminum processing plants are nearing holiday shutdowns. Overall, fundamentals side, supply-side pressure slightly eased, but weak demand during the off-season led to growing risks of inventory buildup. In the short term, aluminum prices are expected to fluctuate downward. In the long term, attention should remain on the US Fed's future stance on interest rate cuts and changes in the pace of consumption recovery.