SMM Morning Comment For Aluminum Market On September 28

SHANGHAI, Sep 28 (SMM) – Overnight, the most-traded SHFE 2311 aluminum contract opened at 19,420 yuan/mt, with its lowest and highest at 19,400 yuan/mt and 19,500 yuan/mt before closing at 19,470 yuan/mt, up 50 yuan/mt or 0.26% compared with the previous trading day. LME aluminum opened at $2,239.5/mt on Wednesday, with its high and low at $2,246.5/mt and $2,220/mt respectively before closing at $2,237.5/mt, a decrease of $3.5/mt or 0.16%.

On the macro front, the Federal Reserve announced the suspension of interest rate increases in September. However, considering the poor economic situation in Europe and the United States, the Fed's members may still push interest rate hikes. Domestic macroeconomic sentiment remained stable. 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. But aluminum stocks remain low amid resilient domestic downstream consumption. Overall, short-term low inventory and low warehouse receipts will support aluminum prices before the National Day holiday. SHFE aluminum contract is anticipated to oscillate at a high level. Follow-up attention should be paid to domestic aluminum inventory and downstream consumption.