[SMM Cast Aluminum Alloy Morning Comment: Overnight Futures Narrowly Recover, Spot Cargo Lacks Uward Momentum in Off-Season] Overnight, the aluminum alloy 2610 contract opened at 22,905 yuan/mt. After a quick dip at the night session's open, buying gradually stepped in, driving prices to consolidate and rebound, hitting an intraday high of 23,055 yuan/mt before closing at 23,035 yuan/mt, up 0.41%.

[Aluminum Social Inventory Destocking Underpins Futures, Short-Term Prices to Consolidate Within Range] Overall, domestic aluminum prices are expected to mainly consolidate in the short term, with upside room likely to be suppressed by production resumption expectations.

SMM August 19: Today, the SMM A00 spot aluminum price closed at 23,670 yuan/mt, down another 230 yuan/mt from the previous trading day. China’s aluminum scrap market prices followed the decline overall, with some regions that were on the sidelines yesterday catching up with the decline today. Against the backdrop of continuously climbing primary aluminum prices, aluminum scrap fluctuations were relatively limited, and the price transmission mechanism was hindered. But recently, as primary aluminum has pulled back, the downside resistance of aluminum scrap has provided an opportunity for the narrowing of the price difference between A00 aluminum and aluminum scrap. Additionally, on the supply side, the constraints of the reverse invoicing policy continue, and the scarcity of compliant invoiced aluminum scrap provides bottom support for aluminum scrap prices. Currently, the high-temperature holiday has not yet ended, the operating rate of downstream cast aluminum alloy enterprises remains low, and order recovery still needs time. Scrap utilization enterprises are likely to continue to purchase as needed and adopt a low-inventory strategy, while concentrated restocking remains pending. It is worth noting that currently, the price difference between A00 aluminum and shredded aluminum tense scrap has gradually widened, and the economic advantage of aluminum scrap over primary aluminum has recovered to some extent. It is expected that the short-term aluminum scrap market will continue to move sideways at high levels, with weak end-use demand remaining the core factor suppressing prices.

[ADC12 Daily Price Review: Aluminum Alloy Futures Consolidate and Pull Back, Spot Prices Generally Fall] The ADC12 market price was generally weak today, with most enterprises cutting prices by around 100 yuan/mt, while a few temporarily maintained stability.

[Macro Expectations Repeatedly Disturb, Aluminum Prices Consolidate with Upside Encountering Resistance] Overall assessment: Short-term aluminum prices are expected to mainly consolidate, with upside room somewhat capped by expectations of production resumptions.

[SMM Cast Aluminum Alloy Morning Comment: Night Session Weakens, Cost-Supported Consolidation] Overnight, the Aluminum Alloy 2610 contract opened at 23,025 yuan/mt, reached a high of 23,040 yuan/mt, a low of 22,920 yuan/mt, and closed at 22,965 yuan/mt, down 120 yuan/mt from the previous settlement, a decline of 0.52%.