SMM Aluminum Market Morning Comment (Jun 14)

The most-traded SHFE 2407 aluminum contract opened at 20,730 yuan/mt, with the highest point at 20,735 yuan/mt, the lowest point at 20,545 yuan/mt, and closed at 20,600 yuan/mt, a drop of 45 yuan/mt, or 0.22%. LME aluminum opened at $2,566/mt in the previous trading day, with the highest point at $2,591/mt, the lowest point at $2,528.5/mt, and closed at $2,544.5/mt, a drop of $24.5/mt, or 0.95%.

Summary: On the macro level, the US Fed's stance on cutting interest rates has been swinging, and regional conflicts have intensified, providing support for gold and commodity prices. On the fundamentals, the arrival of the consumption off-season together with increasing overseas market frictions has led to a decline in orders for aluminum processing enterprises, and the supply and demand relationship in the domestic aluminum market is gradually weakening. In the short term, aluminum prices are under pressure, and are expected to hover around the current level.