SMM Aluminium Market Morning Comment (Sep 13)

SHANGHAI, Sep 13 (SMM) – Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,300 yuan/mt, with its lowest and highest at 19,210 yuan/mt and 19,300 yuan/mt before closing at 19,255 yuan/mt, up 10 yuan/mt or 0.05%. LME aluminum opened at $2,204.5/mt on Tuesday, with its high and low at $2213.5/mt and $2186.5/mt respectively before closing at $2196/mt, a drop of $8/mt or 0.36%.

There are no major macro events recently. In the near future, we need to pay close attention to the multiple impacts Europe of interest rate hike expectations and exchange rate fluctuations on the non-ferrous metals market. Aluminum supply increased, with domestic social inventory of aluminum ingots rising above the 500,000 mt mark, and the inventory pressure in September may mount. At the same time, the supply of imported goods in the market has increased recently, and we need to be alert to the impact of imported low-priced supplies on the domestic aluminum spot market. Low inventory will support aluminum price, while supply pressure will cap gains. It remains uncertain how strong demand will be in September, which normally marks the beginning of peak season. SMM expects short-term aluminum prices to remain volatile and strong, and will pay attention to domestic aluminum inventories and downstream consumption in the future.