Domestic Policies Continue to Strengthen, Spot Market Supply Abundant [SMM Aluminum Morning Meeting Summary Oct 30]

Overnight, the most-traded SHFE aluminum 2412 contract opened at 20,870 yuan/mt, reaching a high of 20,885 yuan/mt and a low of 20,780 yuan/mt, and closed at 20,795 yuan/mt, up 15 yuan/mt from the previous close, an increase of 0.07%. Trading volume was 46,600 lots, open interest was 205,000 lots, with a daily reduction of 1,304 lots. Yesterday, LME aluminum opened at $2,647.5/mt, reached a high of $2,682.5/mt, a low of $2,632/mt, and closed at $2,660/mt, up $8.5/mt, an increase of 0.32%.

Summary: Macro front, domestic policies continue to strengthen to boost the economy, global market liquidity is abundant, but the potential ceasefire in the Middle East brings new variables to macro sentiment. Fundamentals side, the bauxite supply crisis has led to alumina prices rising to high levels, and the cost of the aluminum industry has increased significantly. Overall, current aluminum ingot spot inventory continues to deplete, while the cost side supports aluminum prices to fluctuate at relatively high levels.