Hechuangying, with its outstanding business reputation and high-quality product services, always stands at the forefront of the industry. We focus on spot sales of silicon metal, aluminum alloy ingots, and various aluminum billets, as well as spot-futures arbitrage services, starting from the needs of our clients to provide comprehensive metal material solutions.

[Liquidity Tightening Suppresses Risk Appetite; Destocking Supports Aluminum Prices to Hold Up Well] Based on a comprehensive assessment, with divergences over the Middle East situation still present, the US Fed maintaining an overall hawkish stance despite not raising rates in July, the fundamental deficit persisting, and aluminum ingot inventories continuing to destock, aluminum prices are expected to consolidate on a strong note in the short term.

[SMM Weekly Aluminum Billet Warehouse Withdrawals Statistics] According to SMM statistics, during August 3-9, China's total aluminum billet warehouse withdrawals amounted to 27,500 mt, down 6,000 mt from the previous week.

[SMM China Aluminum Billet Weekly Inventory Statistics] According to SMM statistics, on August 10, the aluminum billet inventory in major domestic consumption areas was 132,500 mt, up 9,000 mt from last Thursday and 10,500 mt from last Monday.

[Divergence over Middle East situation persists, short-term aluminum prices to hold up well] Overall forecast, divergence over the Middle East situation persists, the US Fed did not raise interest rates in July, but its overall stance remains hawkish, the fundamental deficit continues, aluminum ingot inventory keeps destocking, and short-term aluminum prices are expected to consolidate on a strong note.

[Hormuz Situation Uncertain, Off-Season Downstream Weakness Constrains Aluminum Price Upside Room] Overall, divergences persist in the Middle East situation. Although the US Fed did not hike rates in July, its overall stance remains hawkish. The fundamental deficit continues, and aluminum ingot inventory is destocking. In the short term, aluminum prices are expected to consolidate on a strong note. Going forward, close attention should be paid to the progress of production resumptions in the Middle East and the dynamics of new project commissioning plans.