SMM Aluminium Morning Comment

In the futures market, the most-traded SHFE 2402 aluminium contract opened at 19235 yuan/mt overnight, with its low and high at 19200 yuan/mt and 19280 yuan/mt before closing at 19240 yuan/mt, up 50 yuan/mt or 0.26%.
On the macro front, the annualised core PCE price index in the United States in November was lower than expected, and the inflation indicator cooled more than expected. In the third quarter, the actual GDP of the United States was revised downward, and consumption fell short of expectations, which further strengthened expectations that the Fed will turn to interest rate cuts. Views. This supported aluminium prices. After major state-owned banks lowered deposit interest rates, joint-stock banks have also lowered deposit interest rates. China's main expected goals this year are expected to be successfully achieved. In terms of fundamentals, Qinghai Province has implemented power load management due to earthquake relief, and the supply of aluminium may change due to upstream influences. On the demand side, demand is still expected to remain weak. The traditional off-season is approaching, and many companies have begun to withdraw funds for settlement at the end of the year. The willingness to restock has declined. It is expected that the destocking of aluminium companies' warehouses will slow down, but the inventory will still remain low. SMM predicts that the domestic social inventory of aluminium ingots will remain low in the near future and is affected by upstream raw materials, and the short-term aluminium price will remain strong.