New Delhi: In the Chinese market, the Aluminium Ingot prices showcased a 14-month low record, pressured by the bearish market demand amidst higher inventory level. As per market players, the supply of Aluminium Ingots is still increasing, while the latest inventory statistics show that the Aluminium Ingot inventories have stopped falling, indicating the impact of the seasonal low. Furthermore, base metal costs were under severe tension as increasingly hawkish central banks harmed the global outlook for construction and production activity. High temperatures in China and heavy rainfall caused canceled orders from power grid constructors, limiting purchasing from automobile and real estate markets ahead of the upcoming off-season in top consumer China.

At the same time, Chinese smelters increased production as factories resumed operations with increased capacity following Covid lockdowns. Buyers cite that the production activity has already been high, with the country's monthly Aluminium output reaching a new high in June amid relaxed power consumption constraints. According to the suppliers, the spot market trades were inadequate as the off-season approached, and spot discounts widened.

Also, due to the current pandemic pathogen in Xi'an, the Chinese authorities implemented seven-day temporary control measures beginning July 6. Such measures reflect bearish market sentiment fuelled by concerns about demand. Meanwhile, the domestic Aluminium supply increased some more. The growth rate of domestic Aluminium Ingot operating capacity slowed down in June, and manufacturers noted a lack of new orders.

In the spot market, buyers were not quite active. On the supply side, traders generally opted for a wait-and-watch outlook amid wildly fluctuating Aluminium prices. On the demand side, the market dynamics have been affected by the resurging pandemic in Wuxi over the weekend, but the effect is far-fetched to last long or remain firm. As per ChemAnalyst, "Aluminium Ingot prices are yet under absolute pressure and are expected to fall in the short term. Higher inventory level and idled capacity resumptions resulted in poor spot market trades."