SMM Aluminium Market Morning Comment (Sep 12)

SHANGHAI, Sep 12 (SMM) – Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,180 yuan/mt, with its lowest and highest at 19,140 yuan/mt and 19,245 yuan/mt before closing at 19,225 yuan/mt, up 145 yuan/mt or 0.76%. LME aluminum opened at $2,184.5/mt on Monday, with its high and low at $2,210.5/mt and $2,184/mt respectively before closing at $2,207/mt, up $23.5/mt or 1.19%.

At the beginning of this week, the overall macro sentiment was mainly optimistic. In the near future, we need to pay close attention to the multiple impacts of interest rate hike expectations and exchange rate fluctuations on the non-ferrous metals market. Aluminum supply increased, with domestic social inventory of aluminum ingots rising above the 500,000 mt mark, and the inventory pressure in September may mount. At the same time, the supply of imported goods in the market has increased recently, and we need to be alert to the impact of imported low-priced supplies on the domestic aluminum spot market. Low inventory will support aluminum price, while supply pressure will cap gains.