SMM Aluminum Market Morning Comment (Mar 27)

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,490 yuan/mt, with high and low at 19,520 yuan/mt and 19,420 yuan/mt before closing at 19,460 yuan/mt, down 30 yuan/mt or 0.15%. LME aluminum opened at $2,329/mt yesterday, with its high and low at $2,331/mt and $2,296.5/mt respectively before closing at $2,300/mt, down $26.5/mt or 1.14%.

Summary: On the macro front, there were expectations of an interest rate cut by the European Central Bank, and the increasingly tense situation between Russia and Ukraine drove up gold prices. Fundamentally, there are expectations for an increase in production in May, but the drought in Yunnan is still unclear. The arrival of the traditional peak season and the continuous efforts of policies to drive demand boosted the operating rates of various processing sectors. Boosted by positive fundamentals and macro front, aluminum prices may swing on a strong note.