The aluminium market service short term outlook (STO) is published monthly and provides a forecast of aluminium supply and demand fundamentals over the next two years. The bulls were firmly in charge during the past month. Prices rebounded strongly driven by rising investor conviction that this time the Chinese authorities are serious about clamping down on illicit capacity and pollution control. Demand conditions remained broadly positive. While Chinese industrial production and leading indicators softened slightly in July they were still in expansionary mode. This indicates that growth conditions remain supportive at least for the third quarter. Elsewhere despite the seasonal drag the positive short term outlook for European offtake remains intact. Industry contacts report firm activity across a range of end use sectors and offsetting easing demand growth in North American markets. While demand growth in Asia ex China is mixed the overall direction remains positive.