Market Insight | Chalco drops more than 6% under pressure from off-season consumption, short-term aluminum price fluctuates at the bottom

China Aluminum fell more than 6%, hitting a new low of HKD 4.85 since the end of April. As of the time of publication, it fell by 6.17% to HKD 4.87, with a turnover of HKD 152 million. According to SMM data, the A00 aluminum price recorded RMB 19,790 per ton yesterday, a decrease of RMB 250 per ton from the previous trading day; in terms of futures, on July 16, the main Shanghai aluminum contract opened at RMB 19,970 per ton and closed at RMB 19,860 per ton, down RMB 80 per ton from the previous trading day's closing price. Huatai Futures pointed out that domestic electrolytic aluminum supply continues to grow, the market spot supply is sufficient, and demand is gradually entering the off-season. The fundamental driving force is weak, and short-term aluminum prices may be mainly weakly volatile. In addition, Guohai Securities stated that in the short term, aluminum prices are maintaining a volatile grinding bottom, with the strengthening of the market's expectation of a Fed rate cut providing some support to aluminum prices. The discussion on the opening of Indonesian bauxite exports has impacted market sentiment, and short-term bauxite supply remains tight, with alumina prices remaining firm, still supporting aluminum prices. Companies with integrated operations will benefit significantly