SMM Morning Comment For Aluminium Market On August 28

SHANGHAI, Aug 28 (SMM) –

Last Friday night, the most-traded SHFE 2309 aluminium contract opened at 18,555 yuan/mt, with the lowest and highest prices at 18,550 yuan/mt and 18,620 yuan/mt before closing at 18,570 yuan/mt, up 25 yuan/mt or 0.13% from the previous trading day. LME aluminium opened at $2,155/mt on Friday with its high and low at $2,178.5/mt and $2,147/mt respectively before closing at $2,151/mt, a decrease of $6.50/mt or 0.30% from the previous trading day.

On the macro side, over the weekend, a variety of favorable policies were introduced in China, which boosted commodities. In the fundamentals, domestic supply and demand of aluminum maintained growth, and the proportion of molten aluminum output in the industry remained high while that of aluminum ingot stayed low. In the fundamentals, aluminum market maintained a state of simultaneous increase in supply and demand. The proportion of molten aluminum output remained high while aluminum ingot production was limited. The influx of imported aluminum ingots after the import window opened and the release of Southwest capacity may impede destocking progress, but inventory accumulation amount won’t be large. Overall, the imbalance between supply and demand is not prominent. Aluminum prices may fluctuate upward this week. In the follows-up, market participators still need to pay attention to changes in domestic aluminum inventories and downstream recovery.