Aluminium Prices Closed With Gains, Eyes On Key Inflation Data And The Federal Reserve's Interest Rate Decision Next Week

Published: Jun 9, 2023 09:47

Source: SMM

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SHANGHAI, Jun 9 (SMM) – The most-traded SHFE 2307 aluminium contract opened at 18,220 yuan/mt overnight and rose to 18,365 yuan/mt before closing at 18,340 yuan/mt, up 160 yuan/mt or 0.88%.

SHANGHAI, Jun 9 (SMM) – The most-traded SHFE 2307 aluminium contract opened at 18,220 yuan/mt overnight and rose to 18,365 yuan/mt before closing at 18,340 yuan/mt, up 160 yuan/mt or 0.88%. LME aluminium opened at $2,211.5/mt on Thursday, with its low at $2,211/mt before closing at $2,263.5/mt, up $50.5/mt or 2.28%.

On the macro front, the number of Americans filing for unemployment benefits last week rose more than expected, but the market generally believes that the dollar will consolidate ahead of key inflation data and the Federal Reserve's interest rate decision next week. On fundamentals, hydropower generation in Yunnan has gradually improved recently. SMM predicts that a small amount of aluminium capacity may be resumed in the province in late June. In addition, 200,000 mt of aluminium capacity will be resumed in Guizhou and Sichuan. On the demand side, downstream consumption has gradually entered the off-season. However, due to the high proportion of molten aluminium output at smelters, aluminium ingot social inventories continue to drop. Short-term aluminium prices are expected to remain rangebound ahead of the Fed's interest rate decision.

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