SMM Aluminum Market Morning Comment (Apr 24)

Overnight, the most-traded SHFE 2406 aluminum contract opened at 20,000 yuan/mt, with high and low at 20,175 yuan/mt and 19,960 yuan/mt before closing at 20,125 yuan/mt, down 250 yuan/mt or 1.23 %. LME aluminum opened at $2,661.5/mt yesterday, with its high and low at $2,669.5/mt and $2,562.5/mt respectively before closing at $2,576/mt, down $82/mt or 3.09%.

On the macro front, the market is waiting for the US Personal Consumption Expenditure (PCE) price index report to be released on Friday for clues on the prospects for US interest rate cuts. Risky assets and non-US monetary experienced an increase in volatility. The UK and the US imposed sanctions on Russian metals again, and Biden called for a 25% tariff on China’s aluminum semis, triggering turbulence in global metals market. The domestic aluminum supply rose further, but downstream demand dragged down inventories, supporting aluminum prices. The domestic market prices may fluctuate at a high level amid global aluminum trade friction.