SMM Aluminum Morning Meeting: Pre-Holiday Market Sluggishness, Weak Dollar Outlook, Stable Supply

[SMM Aluminum Morning Meeting Summary: SHFE Aluminum Center Shifted Downward Before the Holiday, Sluggish Market Transactions as Downstream Mostly Entered Holiday Mode]

On the macro front, the market is betting that US tariffs may not be as large-scale or widespread as previously feared, leading to a weaker US dollar. On the fundamentals side, supply-side disruptions have decreased, and domestic aluminum operating capacity in February is expected to remain stable. The cost side of the aluminum industry has significantly eased, with the immediate full average cost already dropping to 18,126 yuan/mt, further weakening cost-side support.