SHANGHAI, May 23 (SMM) - The most-traded SHFE 2306 aluminium contract opened at 18,220 yuan/mt overnight, with its low and high at 18,110 yuan/mt and 18,250 yuan/mt before closing at 18,230 yuan/mt, up 40 yuan/mt or 0.22%. LME aluminium opened at $2,288/mt on Monday, with its low and high at $2,249.5/mt and $2,289.5/mt respectively before closing at $2,263.5/mt, a drop of $20.5/mt or 0.9%.
On the macro level, the US debt ceiling negotiations have failed to reach an agreement for now, adding to macro uncertainty. End-user consumption is still recovering, but aluminium supply remains in a surplus. Falling prebaked anode and coal prices weakened cost support to aluminium prices. Macro headwinds and poor fundamentals will expose the short-term aluminium prices to downside risks.
