SMM Aluminum Market Morning Comment (Apr 25)

Overnight, the most-traded SHFE 2406 aluminum contract opened at 20,280 yuan/mt, with its lowest and highest at 20,230 yuan/mt and 20,335 yuan/mt before closing at 20,280 yuan/mt, up 130 yuan/mt or 0.65 %. LME aluminum opened at $2,580/mt in the previous trading day, with its high and low at $2,614.5/mt and $2,563/mt respectively before closing at $2,584/mt, up $8/mt or 0.31%.

On the macro front, the market is waiting for the US Personal Consumption Expenditure (PCE) price index report to be released on Friday for clues on the prospects for US interest rate cuts. Risky assets and non-US monetary experienced an increase in volatility. The UK and the US imposed sanctions on Russian metals again, and Biden called for a 25% tariff on China’s aluminum semis, triggering turbulence in global metals market. The domestic aluminum supply rose further, but downstream demand dragged down inventories, supporting aluminum prices. The domestic market prices may fluctuate at a high level amid global aluminum trade friction.