SMM Aluminium Comment (March 9, 2023)

SHANGHAI, Mar 9 (SMM) - The most-traded SHFE 2304 aluminium contract opened at 18,550 yuan/mt overnight, with its low at 18,450 yuan/mt before closing at 18,530 yuan/mt, up 25 yuan/mt or 0.14%. LME aluminium fell sharply after opening at $2,351/mt on Wednesday, but then rallied and closed at $2,362/mt, up $12.5/mt or 0.53%.

After aluminium smelters in Yunnan have completed production cuts, the market attention will focus more on the recovery of domestic consumption and overseas interest rate hikes. Given the high social inventory, aluminium prices will hover sideways before the US Fed announces its interest rate decision.