Copper and aluminum positions reduced with slight adjustments, alumina prices plummeted [Institutional Commentary]

[Futures Market] During the night session, SHFE copper opened lower and rebounded slightly. During the day session, it fluctuated rangebound until the close. The most-traded July contract closed at 78,170, down 0.04%, with both total trading volume and open interest decreasing. Dragged down by the sharp decline in alumina, SHFE aluminum jumped initially and then pulled back. The most-traded July contract closed at 20,010, down 0.02%, with both total trading volume and open interest slightly decreasing. Alumina plummeted, with the most-traded September contract closing at 2,943, down 2.9%, erasing all gains made earlier in the week.

[Analysis] Trading sentiment for copper and aluminum was cautious today. Although there were signs of easing in the tariff war, US economic data, such as the US ADP employment data and ISM manufacturing PIM, weakened, suppressing the performance of international non-ferrous metals. SHFE copper closed above 78,000, with attention to its potential for expanding positions in the later stage, while aluminum, trading above 20,200, still faces strong resistance in the short term.

[Valuation] Copper is slightly overvalued, while aluminum is fairly valued.

[Risks] External risks.

(Source: China Fortune Futures)