SMM Aluminium Morning Comment on Feb 27, 2023

SHANGHAI, Feb 27 (SMM) -  The most-traded SHFE 2304 aluminium contract opened at 18,570 yuan/mt at last Friday’s night session before closing at 18,365 yuan/mt, down 270 yuan/mt or 1.45%. LME aluminium opened at $2,389.5/mt last Friday and closed at $2,642/mt, a decrease of $47.5/mt or 1.99%.
Macro data show that inflation in Europe and the United States is still high, thus expectations for interest rate hikes still exist. The US dollar index rose again, putting pressure on metal prices. The social inventory of aluminium ingot has not yet entered a destocking cycle. High inventory suppressed the confidence of bulls to a certain extent. Coal price rose rapidly, and the cost side is expected to rise. On the whole, growing inventory and unfavorable macro front dragged down aluminium prices. Until consumption shows signs of a substantial improvement, aluminium prices will remain weak.