SMM Morning Comment For Aluminum Market On October 20

SHANGHAI, Oct 20(SMM) – Overnight, the most-traded SHFE 2311 aluminum contract opened at 19,020 yuan/mt, with its lowest and highest at 18,975 yuan/mt and 19,045 yuan/mt before closing at 19,015 yuan/mt, up 40 yuan/mt or 0.21% compared with the previous trading day. LME aluminum opened at $2,193.5/mt on Thursday, with its high and low at $2,195.5/mt and $2,178.5/mt respectively before closing at $2,190.5/mt, an increase of $1.5/mt or 0.07%.

Recently, 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. Aluminum prices may remain high and volatile in the short term, and market players should pay close attention to overseas macro changes.