Minmetals Futures: Short-term aluminum prices expected to stay high

The ongoing reduction in supply caused by Middle East conflicts continues to have an impact, with United Arab Emirates United Aluminum announcing the shutdown of all facilities, estimated to affect 1.6 million tons of annualized production capacity, thus even if the Strait of Hormuz reopens, overseas electrolytic aluminum supply will still be significantly tightened, and spot prices are expected to remain tight; domestic downstream operating rates are relatively stable, and large import losses favor increased exports, combined with price fluctuations, domestic inventories are expected to shift towards destocking. In the short term, aluminum prices are expected to run at high levels; if domestic destocking accelerates, aluminum prices are likely to further strengthen. (Minmetals Futures)