SMM Aluminium Market Morning Comment (Feb 7)

The most-traded SHFE 2403 aluminium contract opened at 18,905 yuan/mt overnight, with its low and high at 18,870 yuan/mt and 19,020 yuan/mt before closing at 18,970 yuan/mt, up 0.64%. LME aluminium opened at $2,206/mt on Tuesday, with its low and high at $2,203/mt and $2,242/mt respectively before closing at $2,229/mt, up 1.11%.

As CNY is drawing near, inventory grew amid subdued consumption. Transactions in the spot market was sluggish, in line with market expectations. From a macro perspective, expectations for an interest rate cut by the Federal Reserve in March fell. The Chinese government continued to stress efforts to boost market confidence. In the short term, aluminium prices are expected to move rangebound.