This week, domestic aluminum ingot inventories experienced an abrupt significant accumulation, weighing on spot premiums and discounts in major spot markets.
Output cuts in Yunnan will have minimal impact on supply in the spot market in the short term. In the absence of strong demand, spot discounts are unlikely to turn into premiums. SMM sees spot discounts between 10-100 yuan/mt against the SHFE 2311 contract next week.
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