Negative Factors Simmering behind Aluminum Rally, SMM Warns

SHANGHAI, Jun. 21 (SMM) – Aluminum prices have made a strong comeback over the past two days, but this is no time to cheer up since negative factors are simmering, SMM warns. 

 Aluminum stocks did not fall sharply during this year’s traditional peak-demand season because of growing supply.

As of June 19, aluminum ingot stocks in domestic five major markets (Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi) totaled 1.19 million tonnes, down 11,000 tonnes from June 15, according to SMM statistics. The figure, though down, is still high, and the decline is small.  

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The demand side will not offer support to prices, either. 

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SMM learned orders at downstream producers have fallen in June with onset of the off-season. 

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