SMM Aluminum Futures Brief: Weak Demand & Holiday Shutdowns Cause SHFE Aluminum Fluctuations

[SMM Aluminum Futures Brief: Weakening Demand, SHFE Aluminum Fluctuates Slightly]

Demand side, market demand continues to weaken during the off-season, with operating rates in the aluminum processing industry declining steadily. Some aluminum processing plants are approaching holiday shutdowns. Although pre-holiday concentrated restocking has led to an unexpectedly rapid inventory reduction, temporarily boosting aluminum prices, the sustainability is expected to be limited. Key focus should be on the pullback in upstream spot alumina prices and its impact on the cost side of aluminum, as well as the downstream holiday schedules and the continuity of pre-holiday restocking pace.