SHANGHAI, Feb 8 (SMM) – SHFE 2303 aluminium contract opened at 19,030 yuan/mt overnight and mostly fluctuated above 19,000 yuan/mt before finally closing at 19,065 yuan/mt.
LME aluminium opened at $2,547/mt on Tuesday and dropped to $2,505/mt before closing at $2,534/mt, down 0.37%.
On the demand side, demand in aluminium ingot, billet and downstream alloy sectors are recovering, which has been reflected in the spot market. On the supply side, expectations for production reduction still exist, thus aluminium prices are supported. Although aluminium inventory is still in accumulation cycle, the growth is expected to slow down in the future. Aluminium prices are expected to go up.
