SMM Aluminum Market Morning Comment (Apr 1)

The most-traded SHFE 2405 aluminum contract opened at 19,710 yuan/mt last Friday night, with its lowest and highest at 19,645 yuan/mt and 19,820 yuan/mt before closing at 19,665 yuan/mt, up 45 yuan/mt or 0.23%.

From a macro perspective, overseas interest rate cuts delayed again. The US February PCE data was basically in line with expectations, the Fed made hawkish remarks again, and non-ferrous metals were under pressure. The domestic manufacturing PMI in March returned to the expansion territory, and the domestic economy rebounded. Fundamentally, the recovery of downstream consumption is in line with expectations. The comprehensive PMI index of the aluminum processing industry in March was in expansion territory. Aluminum ingot inventories declined slightly last week. The operating rate of downstream enterprises improved and were expected to grow in April. Stable market demand provided support for aluminum prices.