SMM Aluminum Morning Comment

The most-traded SHFE 2312 aluminum contract opened at 19170 yuan/mt overnight, with the highest and lowest prices at 19210 yuan/mt and 19125 yuan/mt before closing at 19200 yuan/mt, up 21 yuan/mt. LME aluminum opened at $2286.0/mt on Tuesday, with its low and high at $2253.0/mt and $2286.0/mt respectively before closing at $2277.0/mt, down $9/mt or 0.39%.

There is still great uncertainty in overseas macroeconomics. U.S. economic data shows that the U.S. economy is resilient. The U.S. dollar index fluctuates at a high level, suppressing commodities. China will issue an additional one trillion yuan of local government bonds to boost the economic market Recovery. In terms of fundamentals, some aluminum billet factories have recently reduced production, and ingot casting volume has increased. Domestic aluminium supply will remain high in the short term. There has been inflows of imported goods due to import profit. Downstream consumption is weakening, and aluminum billet and ingot inventory faces pressure. The inventory is still at a high level in half a year. In the short term, aluminum prices may remain rangebound.