SMM Aluminum Market Morning Comment (May 23)

Overnight, the most-traded SHFE aluminum contract 2407 opened at 21,110 yuan/mt, reaching a high of 21,220 yuan/mt and a low of 20,945 yuan/mt, and closed at 21,040 yuan/mt, down 335 yuan/mt, a decrease of 1.57%. The previous trading day, LME aluminum opened at $2,710.5/mt, reached a high of $2,749/mt and a low of $2,621/mt, and closed at $2,640.5/mt, down $75/mt, a decrease of 2.76%.

Summary: On the macro front, the US Fed Minutes released last night were hawkish, and intensified overseas trade frictions are putting pressure on demand. On the fundamentals, social inventory grew YoY, and alumina prices recently surged and then retreated. Under the influence of multiple factors, aluminum prices fell sharply overnight, and are expected to continue to fluctuate widely in the short term.