Recycled aluminum alloy ingot inventory declines for three consecutive periods; short-term continuation possible

According to SMM statistics, this week’s domestic recycled aluminum alloy ingot social inventory decreased by 5.6k tons week-on-week to 53.1k tons, marking the third consecutive week of decline. From a driving logic perspective, the supply side has experienced passive production cuts due to ticket shortages, leading to a continuous tightening of market circulation sources; on the circulation side, driven by factors such as widening basis, downstream inventory replenishment on demand, and proactive buybacks by manufacturers, traders’ shipment volumes have increased. Restrictions on bills and the effects of basis widening are expected to continue driving inventory decline in the short term, but considering that the overall pattern of weakening terminal demand has not changed, the pace of inventory reduction is expected to be relatively moderate.
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