SMM Morning Comment For Aluminum Market On October 17

SHANGHAI, Oct 17(SMM) – Overnight, the most-traded SHFE 2311 aluminum contract opened at 18,975 yuan/mt, with its lowest and highest at 18,900 yuan/mt and 18,975 yuan/mt before closing at 18,910 yuan/mt, down 75 yuan/mt or 0.40% compared with the previous trading day. LME aluminum opened at $2,193/mt on Monday, with its high and low at $2,205/mt and $2,179/mt respectively before closing at $2,181/mt, a decrease of $9/mt or 0.41%.

Overall, external macro news disturbed market. The swinging expectations of short-term interest rate hikes and the intensification of the Palestinian-Israeli conflict added uncertainty to market. Domestic favorable policies continue to be issued, promoting economic recovery. Although social inventories gradually accumulated after the holiday, the total inventory was still at a historical low for the same period, which had not brought much negative effects on aluminum prices. In the medium to long term, aluminum supply and demand may maintain a tight balance, and aluminum prices are expected to fluctuate at high levels, with limited downside space.