SMM Morning Comment For Aluminium Market On September 18

SHANGHAI, Sep 18 (SMM) – Last Friday night, the most-traded SHFE 2310 aluminum contract opened at 19,280 yuan/mt, with its lowest and highest at 19,155 yuan/mt and 19,285 yuan/mt before closing at 19,175 yuan/mt, down 160 yuan/mt or 0.83% compared with the previous trading day. LME aluminum opened at $2,220.5/mt on last Friday, with its high and low at $2,231.5/mt and $2,187/mt respectively before closing at $2,196/mt, a decrease of $24/mt or 1.08%.

Domestic policies, like those concerning real estate, continue to progress, and measures to stimulate domestic demand are gradually being enacted. On a fundamental level, the growth rate of domestic aluminum supply is decelerating, import window is open, and the market's overseas aluminum ingot supply is on the rise. Yet, domestic downstream consumption remains robust, with sustained low inventory throughout the week, and no significant shifts in market trading logic for now. In the short term, low inventory and warehouse receipt volumes may disrupt the hedging of future short positions. Near-term contracts are expected to maintain relatively strong fluctuations. SHFE aluminum contract is anticipated to oscillate at a high level.