SHANGHAI, May 16 (SMM) - The most-traded SHFE 2306 aluminium contract opened at 18,185 yuan/mt overnight, with its low and high at 18,100 yuan/mt and 18,245 yuan/mt before closing at 18,155 yuan/mt, up 40 yuan/mt or 0.22%. LME aluminium opened at $2,243/mt on Monday, with its low and high at $2,221.5/mt and $2,280/mt respectively before closing at $2,269/mt, an increase of $26/mt or 1.16%.
On the macro front, the US debt crisis is fermenting, and market panic still exists. Aluminium output continued to grow. The cost side has no support to aluminium prices. Despite falling aluminium ingot social inventory, market players are pessimistic over future demand. Spot market performed poorly. SMM expects the short-term aluminium prices to remain under downward pressure.