SHANGHAI, Jul 10 (SMM) – The most-traded SHFE 2308 aluminium contract opened at 17,880 yuan/mt last Friday’s night session, with its low and high at 17,850 yuan/mt and 17,950 yuan/mt before closing at 17,940 yuan/mt. It rose by 95 yuan/mt or 0.53%. LME aluminium opened at $2,134/mt last Friday, with its low and high at $2,127/mt and $2,151/mt respectively before closing at $2,141/mt, up $11/mt or 0.52%.  

U.S. non-farm payrolls increased less than expected in June and the labour market is losing some momentum as high interest rates and months of sluggish consumer spending have raised concerns about the economic outlook. Market players were pining hopes on economic stimulus policies from China. In terms of fundamentals, the restarts of idled aluminum capacity in Yunnan Province will translate into greater supply pressure in late July. At the same time, there were rumours of power rationing in Sichuan. Aluminum ingot social inventory is expected to accumulate further as downstream consumption is in the off-season. In the short term, the resumption of aluminum production in Yunnan and weakening consumption will weigh down aluminum prices, but low inventory may curb the downside room. The most-traded SHFE aluminium contract and LME aluminium are likely to move between 17,500-18,500 yuan/mt and $2,100-2,200/mt respectively this week.

More popular news

Daily LME Base Metals Inventory Changes (July 6)

China's June Official Manufacturing PMI Contradicts Caixin PMI

China To Restrict Exports Of Critical Chipmaking Metals Gallium And Germanium In Escalated Tech War

Chief Economist At S&P Global Market Intelligence Warns Of US Recession In H2 2023, US ISM Manufacturing PMI Unexpectedly Hits More Than Three-Year Low In June 

There Are Rumours Of Power Rationing In Sichuan After Aluminium Production In Yunnan Gradually Recovers From Power Rationing That Began In Late February 

Ferrous Metals Prices To Extend Significant Volatility In July, SMM Analysis From Macro And Fundamentals