Aluminium Deficit View Intact After Risk-Off Selloff – ING

ING analysts Warren Patterson and Ewa Manthey report that aluminium led a broad sell-off in metals, triggered by a sharp decline in global equities and a more hawkish stance from the Federal Reserve. Despite the risk-off move, the analysts maintain their view that the market remains in a deficit.

The selloff was part of a broader risk aversion across asset classes, but the fundamental supply-demand balance for aluminium is still seen as supportive. ING's assessment suggests the deficit narrative is intact, implying that prices could recover once the panic subsides.