Copper and aluminum fluctuate rangebound, alumina jumps initially and then pulls back [Institution Comment]

[Futures Market] During the night session, SHFE copper futures bottomed out and rebounded. During the day session, the most-traded June futures contract briefly surpassed 78,000, but pulled back in the afternoon, closing at 77,790, down 0.15%. Total trading volume increased slightly, and total open interest rose by over 3,000 lots. The trading rhythm of SHFE aluminum futures was largely synchronized with that of SHFE copper futures. The most-traded July futures contract closed at 20,155, down 0.20%. Total trading volume increased slightly, while total open interest decreased slightly. The exchange raised transaction fees for alumina, cooling down speculative activity. Alumina futures pulled back, with the most-traded September futures contract closing at 3,169, down 2.01%.

[Analysis] SHFE copper futures continue to fluctuate, with signs of a downward shift in the trading center. The short-term resistance level is at 78,000. In the near term, the macro front is unlikely to provide strong driving forces for copper prices. Attention should be paid to the 77,000-78,000 fluctuation range. Alumina futures are undergoing short-term adjustments, exerting a bearish influence on aluminum prices. As the market gradually enters the off-season for consumption, although inventory levels continue to decline, aluminum prices lack strong driving forces in the short term. Technically, attention should be paid to the 19,500-20,300 fluctuation range.

[Valuation] Copper is moderately to highly valued, while aluminum is neutrally valued.

[Risks] External risks.

(Source: China Fortune Futures)