SHANGHAI, May 8 (SMM) – The US banking crisis escalated shortly after the Fed announced its interest rate decision, adding to uncertainties over the future interest rate path and intensifying market risk aversion. In terms of fundamentals, the domestic aluminium output rose slightly while smelters’ costs fell drastically. End demand did not improve significantly after the Labour Day holiday, but this has not yet been transmitted to aluminium ingot social inventories. SMM expects the short-term aluminium prices to come under downward pressure, but the downside room may be limited under the support of low inventory. The most-traded SHFE aluminium and LME aluminium are likely to move between 18,000-18,800 yuan/mt and $2,250-2,400/mt respectively this week.
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