Spot discounts continue to narrow, demand may improve [SMM Aluminum Morning Comment]

SMM, Sep 5: Overnight, the most-traded SHFE aluminum 2410 contract opened at 19,345 yuan/mt, reaching a high of 19,420 yuan/mt, a low of 19,305 yuan/mt, and closed at 19,365 yuan/mt, up 15 yuan/mt, an increase of 0.08%. On Wednesday, LME aluminum opened at $2,412.5/mt, reached a high of $2,418.5/mt, a low of $2,370.5/mt, and closed at $2,399.5/mt, down $16/mt, a decrease of 0.66%.
Summary: On the macro side, the newly released US economic data has strengthened market expectations for a 50 basis point rate cut by the US Fed in September. On the fundamentals side, the supply side has been relatively stable recently. The demand side is entering the traditional peak season, consumption is gradually recovering, and the inventory reduction turning point may have appeared. It is expected that short-term aluminum prices will still have upside potential, and attention should still be paid to macro changes and the sustainability of downstream aluminum consumption.