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SMM Morning Comment For Aluminium Market On September 20

iconSep 20, 2023 09:28
Source:SMM
Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,325 yuan/mt and went down before closing at 19,160 yuan/mt, down 75 yuan/mt or 0.39% compared with the previous trading day.

SHANGHAI, Sep 20 (SMM) – Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,325 yuan/mt and went down before closing at 19,160 yuan/mt, down 75 yuan/mt or 0.39% compared with the previous trading day. LME aluminum opened at $2,219.5/mt on Tuesday, with its high and low at $2,225/mt and $2,205/mt respectively before closing at $2,215.5/mt, a decrease of $1.5/mt or 0.07%. On the macro front, the US dollar index rose slightly overnight. The Fed will announce the latest meeting results and policy statement at 2 a.m. on Thursday. The US dollar remained wobbly overnight despite market consensus that the Fed will keep policy rates on hold. In addition, the central banks of the United States, United Kingdom, and Japan will make interest rate decisions this week. On a fundamental level, the growth rate of domestic aluminum supply is decelerating, the import window is open, and the market's overseas aluminum ingot supply is on the rise. In addition, due to no obvious improvement in the downstream operating rate during the peak season, both aluminum ingots and aluminum billet faced inventory accumulation this week. Short-term low inventory and low warehouse receipts will support aluminum prices, though. SHFE aluminum contract is anticipated to oscillate at a high level. Follow-up attention should be paid to domestic aluminum inventories and downstream consumption.

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