Spot Market Supply Tight, Alumina Prices Remain High [SMM Aluminum Morning Meeting Summary Oct 23]

Published: Oct 23, 2024 09:41

Source: SMM

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Overnight, the most-traded SHFE aluminum 2412 contract opened at 20,930 yuan/mt, reaching a high of 21,010 yuan/mt and a low of 20,875 yuan/mt, and closed at 20,915 yuan/mt, up 170 yuan/mt or 0.82% from the previous close. On Tuesday, LME aluminum opened at $2,591.5/mt, hit a high of $2,647.5/mt, a low of $2,588/mt, and closed at $2,637/mt, up $41.5/mt or 1.60%.
Summary: Macro front, domestic policies continue to boost the market, while the situation in the Middle East and between South and North Korea remains uncertain. Fundamentals side, the bauxite supply crisis has driven alumina prices to high levels, significantly increasing costs in the aluminum industry. Overall, the supply-demand mismatch in the aluminum market is not prominent, but the uncertainties on the macro front and cost side may support aluminum prices to fluctuate upward.

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