The most-traded SHFE 2312 aluminum contract opened at 18940 yuan/mt overnight, with its low and high at 18940 yuan/mt and 19130 yuan/mt before closing at 19060 yuan/mt, up 95 yuan/mt or 0.50%. LME aluminum opened at $2235/mt in the previous trading day, with its low and high at $2214/mt and $2244.5/mt respectively before closing at $2224/mt, down $6/mt or a decrease of 0.27%.
On the macro level, the newly released U.S. CPI data has provided support for aluminum prices. Domestic favorable policies continue to boost the domestic economy. China’s October social financing data far exceeded expectations, boosting market confidence. In terms of fundamentals, Yunnan's production reduction coincides with the arrival of the off-season, and both supply and demand are reduced. The reduction on the demand side still needs to be observed. SHFE aluminum is expected to move sideways short-term.
