SHANGHAI, May 26 (SMM) - The most-traded SHFE 2307 aluminium contract opened at 17,750 yuan/mt overnight, with its low and high at 17,575 yuan/mt and 17,920 yuan/mt before closing at 17,765 yuan/mt, up 115 yuan/mt or 0.65%. LME aluminium opened at $2,209/mt on Thursday, with its low and high at $2,193/mt and $2,239/mt respectively before closing at $2,214/mt, up $8/mt or 0.36%.
On the macro level, the debt ceiling negotiations have failed to reach an agreement for now, adding to macro uncertainty. The US Fed swings on whether to raise interest rate or not. Consumption recovery is weaker than expected. Aluminium ingot inventories in some areas have begun to accumulate. Falling prebaked anode and coal prices weakened cost support to aluminium prices. It remains to be see whether SHFE aluminium will fall below 18,000 yuan/mt in the short term.
