SMM Morning Comment For Aluminium Market On November 6

SHANGHAI, November 6(SMM) –

The most-traded SHFE 2312 aluminum contract opened at 19195 yuan/mt at last Friday’s night session, with its low and high at 19160 yuan/mt and 19260 yuan/mt before closing at 19195 yuan/mt, flat from the previous trading day. LME aluminum opened at $2232.5/mt last Friday, with its low and high at $2229.5/mt and $2260/mt respectively before closing at $2256.5/mt, up 0.98%.

The Federal Reserve's pause in rate hikes meets market expectations, yet high inflation abroad raises concerns about weak foreign demand. Despite domestic policy boosts, the industrial chain impact will take time. Fundamentally, Yunnan region's aluminium production cuts have started, relieving future domestic supply pressure. Yet, with poor consumer performance and weak demand, domestic aluminium ingot inventory grew and spot prices maintained discount against SHFE. Soft demand will counteract positive impact from production cuts. Therefore, SHFE aluminium will lack upward momentum.