The most-traded SHFE 2403 aluminum contract opened at 18,740 yuan/mt overnight, with its low and high at 18,710 yuan/mt and 18,775 yuan/mt before closing at 18,760 yuan/mt, down 0.29%. LME aluminum opened at $2,236.5/mt on Monday, with its high and low at $2,236.5/mt and $2,203/mt respectively before closing at $2,204.5/mt, down 1.43%.
As CNY is drawing near, inventory grew amid subdued consumption. Transactions in the spot market was sluggish, in line with market expectations. From a macro perspective, expectations for an interest rate cut by the Federal Reserve in March fell. The Chinese government continued to stress efforts to boost market confidence. In the short term, aluminium prices are expected to move rangebound. However, there were rumours that Yunnan may relax energy efficiency management after CNY. SMM will keep a close eye on its progress and other unexpected news from the macro perspective.
