CITIC Futures: The non-ferrous metals sector collectively declines, and aluminum oxide prices retreat from high levels

Recently, macroeconomic sentiment has amplified market fluctuations, with Middle Eastern turmoil causing widespread pressure on risk assets. From a fundamental perspective, aluminum oxide operating capacity has experienced little fluctuation, and the balance between upstream and downstream has significantly improved, but it still remains slightly oversupplied. Warehouse receipt levels are continuously rising, and spot prices have slightly increased. The ongoing Middle Eastern issues have caused continuous disruptions in electrolytic aluminum production, putting pressure on aluminum oxide demand. However, rising shipping costs and auxiliary material prices are also supporting cost increases, raising expectations for higher costs. Recently, disturbances at the mine site have reemerged, intensifying market concerns over resource stability, leading to a short-term rapid rise in market prices. (CITIC Futures)