SMM Morning Comment For Aluminium Market On September 21

SHANGHAI, Sep 21 (SMM) – Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,405 yuan/mt, with its lowest and highest at 19,360 yuan/mt and 19,465 yuan/mt before closing at 19,415 yuan/mt, up 105 yuan/mt or 0.54% compared with the previous trading day. LME aluminum opened at $2,212/mt on Wednesday, then reached its high at $2,258.5/mt and finally closed at $2,254/mt, an increase of $38.5/mt or 1.74%.

On the macro front, the Fed kept its benchmark interest rate unchanged at a range of 5.25%-5.50%, in line with market expectations, but reflected the possibility of continuing to raise interest rates in the resolution. 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, aluminum ingots faced a minor 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 stockpiles before the National Day.