The Bank of Canada Cuts Interest Rates Again, Spot Market Actively Sells Off [SMM Aluminum Morning Comment]

Futures: Overnight, the most-traded SHFE aluminum 2412 contract opened at 20,855 yuan/mt, reaching a high of 21,170 yuan/mt and a low of 20,830 yuan/mt, closing at 20,920 yuan/mt, up 5 yuan/mt or 0.02% from the previous close. On Wednesday, LME aluminum opened at $2,632.5/mt, hitting a high of $2,684/mt and a low of $2,626/mt, closing at $2,656.5/mt, up $19.5/mt or 0.74%.

Summary: Macro front, domestic policies continue to boost the economy, and global market liquidity is abundant. Fundamentals side, the bauxite supply crisis has driven alumina prices to high levels, significantly increasing costs in the aluminum industry. Overall, in the short term, the supply-demand mismatch in the aluminum market is not prominent, but uncertainties on the macro front and cost side may support aluminum prices to fluctuate upward.