SMM Morning Comment For Aluminium Market On August 29

SHANGHAI, Aug 29 (SMM) –

Overnight, the most-traded SHFE 2310 aluminium contract opened at 18,620 yuan/mt, with the lowest and highest prices at 18,590 yuan/mt and 18,645 yuan/mt before closing at 18,635 yuan/mt, up 55 yuan/mt or 0.30% from the previous trading day. LME was closed for a bank holiday, so there was no aluminum price.

On the macro side, domestic positive policies boosted markets, but speculation on the Fed’s interest rate hike increased macro uncertainty. 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.