SHANGHAI, Feb 28 (SMM) - The most-traded SHFE 2304 aluminium contract opened at 18,425 yuan/mt overnight before closing at 18,535 yuan/mt, up 160 yuan/mt or 0.87%. LME aluminium opened at $2,344/mt on Monday and closed at $2,376.5/mt, an increase of $34.5/mt or 1.47%.
On the macro side, the US dollar index fell overnight, driving base metals prices to rebound, but expectations for subsequent overseas interest rate hikes are strong. Aluminium ingot social inventory maintained the trend of accumulation, and spot transactions have not improved significantly. On the whole, rising inventory and unfavourable macro conditions will cap gains of aluminium prices. Before consumption shows signs of a substantial improvement, aluminium prices will remain rangebound.
