June 27 News:
According to SMM statistics, on June 27, the inventory of aluminum ingots in Guangdong was 149,000 mt; in Wuxi, it was 102,000 mt; and in Gongyi, it was 63,000 mt. The total inventory across these three locations was 318,000 mt, a decrease of 4,000 mt compared to the previous trading day.
Looking ahead, aluminum prices have been fluctuating at highs recently, which will inevitably exert a certain inhibitory effect on domestic demand during the off-season. There is an expectation of weaker outflows from warehouses, leading to slowing pressure on overall destocking in the country during the second half of the month. Meanwhile, the disruptions from domestic supply and imported sources cannot be overlooked, with signs of a notable increase in in-transit volumes recently. Close attention should be paid to the expected increase in casting ingot production across the country in July before the signal of inventory buildup during the off-season becomes clear (for the time being, SMM suggests focusing on the key time point from late June to early July) to determine the next direction of market sentiment.
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