SMM Morning Comment For Aluminium Market On December 22

SHANGHAI, December 22 (SMM) –

Overnight, the most-traded SHFE 2401 aluminum contract opened at 18980 yuan/mt, with its low and high at 18980 yuan/mt and 19045 yuan/mt before closing at 19025 yuan/mt, down 10 yuan/mt or 0.05%. LME aluminum opened at $2237/mt yesterday, with its high and low at $2248/mt and $2222/mt respectively before closing at $2248/mt, up 0.11%.

The domestic macroeconomic outlook has once again been positive, and the central bank has proposed to increase counter-cyclical and inter-cyclical adjustments to guide reasonable credit growth. The National Development and Reform Commission will study and introduce new measures and plan stockpiling policies. Overseas, the continued crisis of the Red Sea route suspension has brought new uncertainty to the global macro. In terms of fundamentals, the domestic aluminum supply side is operating stably for the time being, but the rain and snow in the north in winter puts great pressure on transportation, and we still need to pay attention to the arrival of domestic aluminum products. Demand is still expected to weaken. The traditional off-season is approaching, and many companies will show less willingness to restock. It is expected that the destocking of aluminum ingots will slow down, but the inventory will still remain low. Low inventories may still support aluminum prices next week.