Macro Headwinds to Leave Aluminium Prices Vulnerable

Published: Mar 16, 2023 10:10

Source: SMM

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SHANGHAI, Mar 16 (SMM) – Affected by macro sentiment, non-ferrous metals prices generally fell.

SHANGHAI, Mar 16 (SMM) – Affected by macro sentiment, non-ferrous metals prices generally fell. The most-traded SHFE 2304 aluminium contract opened at 18,210 yuan/mt overnight and fell to around 18,000 yuan/mt before closing at 18,070 yuan/mt, down 285 yuan/mt or 1.55%. LME aluminium opened at $2,349/mt on Wednesday and sank to $2,261/mt before closing at $2,281/mt, down 3%.

On the macro level, in recent days, the bankruptcy of Silicon Valley Bank and the credit turmoil of Credit Suisse Bank have increased market concerns about global liquidity issues and systemic risks. Surging risk aversion caused hammered commodity market. The fundamentals of aluminium market have not changed much. The demand is gradually recovering. However, under the influence of bearish macro sentiment, it is expected that the aluminium prices will be vulnerable to decline.

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