SMM Morning Comment For Aluminium Market On September 1

SHANGHAI, Sep 1 (SMM) – Overnight, the most-traded SHFE 2310 aluminium contract opened at 18,975 yuan/mt, with the lowest and highest prices at 18,930 yuan/mt and 19,025 yuan/mt before closing at 18,985 yuan/mt, up 50 yuan/mt or 0.26% from the previous trading day. LME aluminium opened at $2,201.5/mt on Wednesday with its high and low at $2,229/mt and $2,199.5/mt respectively before closing at $2,201/mt, a slight decrease of $0.5/mt or 0.02% from the previous trading day.

On the macro side, frequent domestic favorable policies continued to wield boosting effects. In the fundamentals, aluminum ingot inventories remained low, and market expectations for consumption improvement in September may bring certain support to prices to aluminum prices. Domestic aluminum market maintained a state of simultaneous increase in supply and demand. The proportion of molten aluminum output remained high. The influx of imported aluminum ingots after the import window opened and the release of Southwest capacity may impede destocking progress. Overall, the imbalance between supply and demand is not prominent. Aluminum prices may fluctuate upward amid positive macro front. In the follows-up, market participators still need to pay attention to changes in domestic aluminum inventories and downstream recovery.