Auminum Prices Have Returned Above 18,000 yuan/mt, But Further Rise Depends On Whether Fundamentals Can Improve

SHANGHAI, Jun 1 (SMM) – The most-traded SHFE 2307 aluminium contract opened at 18,000 yuan/mt overnight, with its low and high at 17,945 yuan/mt and 18,160 yuan/mt before closing at 18,115 yuan/mt, up 180 yuan/mt or 1%. LME aluminium opened at $2,227.5/mt on Wednesday, with its low and high at $2,201/mt and $2,249/mt respectively before closing at $2,247/mt, up $19/mt or 0.85%.

On the macro level, although Biden and McCarthy have reached an agreement on the debt ceiling issue, the plan still needs to be passed by Congress. At present, many Republican lawmakers have raised objections, and the x-date is gradually approaching. The market is still worried about the debt ceiling issue. PCE data shows that US prices are still firm. The Fed is expected to raise interest rates in June. Auminum ingot social inventories continued to fall. Auminum prices have returned to above 18,000 yuan/mt, but further rise depends on whether fundamentals can improve.