The fundamentals of aluminum remain relatively stable, with attention on changes in macro sentiment [SMM Aluminum Morning Meeting Summary Oct 21]

Last Friday night, the most-traded SHFE aluminum 2412 contract opened at 20,735 yuan/mt, reaching a high of 20,750 yuan/mt and a low of 20,650 yuan/mt, closing at 20,720 yuan/mt, up 155 yuan/mt from the previous close, an increase of 0.75%. On Friday, LME aluminum opened at $2,560/mt, reaching a high of $2,616/mt and a low of $2,548/mt, closing at $2,613.5/mt, up $56/mt, an increase of 2.19%.

Summary: On the macro front, domestic policies continue to boost the market, while tensions in the Middle East and between North and South Korea have driven up prices of gold and commodities. On the fundamentals side, a bauxite supply crisis has led to a rapid increase in alumina prices, significantly raising costs in the aluminum industry. Overall demand remains stable with no significant short-term fluctuations. In summary, the supply-demand mismatch in the aluminum market is not prominent, and short-term attention should be focused on changes in macro sentiment.