SHANGHAI, Apr 10 (SMM) – The domestic aluminum supply is estimated to maintain an upward trend in the second quarter. How the power supply situation in Yunnan will evolve deserves close attention. SMM predicts that the operating aluminum capacity in Yunnan will barely change in the foreseeable future. Aluminium ingot inventories are expected to extend declines due to lower output and downstream restocking, while aluminum billet inventories may build up as downstream demand is unable to keep up with growing production. With supply and demand both increasing, aluminum prices may fluctuate rangebound.
The most-traded SHFE aluminium contract and LME aluminium are likely to move between 18,300-19,000 yuan/mt and $2,300-2,450/mt respectively this week.
