SMM Aluminum Market Morning Comment (May 8)

Overnight, the most-traded SHFE 2406 aluminum contract opened at 20,600 yuan/mt, with the highest and lowest prices at 20,655 yuan/mt and 20,535 yuan/mt before closing at 20,585 yuan/mt, down 50 yuan/mt or 0.24%. LME aluminum opened at $2,573/mt on Tuesday, with its low and high at $2547/mt and $2,593/mt respectively before closing at $2,568.5/mt, up 0.69%.

Summary: The domestic macro front was intertwined with bullish and bearish factors. Supporting real estate and stimulating consumption still dominated the market. The inventory growth after the holiday was better than expected. The inventory of aluminum ingots and billets in major consumption areas dropped slightly, but high aluminum price suppressed downstream consumption. The inventory of aluminum ingots and aluminum billets declined at a slower pace. In the short term, supply-demand imbalance is not prominent. Low inventory and bullish demand can support aluminum price. It is expected that the aluminum prices may go up.