Copper reduces positions and rebounds, aluminum fluctuates upward [Institution Comment]

[Futures Market] On Friday night session, SHFE copper opened lower and closed higher. On Monday's day session, it experienced a brief pullback before rebounding again, maintaining its strength in the afternoon and hitting a new intraday high. The most-traded July contract closed at 78,550, up 0.19%, with a slight decrease in both total trading volume and open interest. SHFE aluminum fluctuated rangebound, with the most-traded July contract closing at 20,405, down 0.10%. Total trading volume decreased slightly, while total open interest increased slightly. Today, SHFE aluminum's forward contracts outperformed near-month contracts. During the same period, alumina hit a new stage low, with the most-traded September contract closing at 2,852, down 0.73%.

[Analysis] Today is the last trading day for the June contracts. Tomorrow, attention should be paid to the impact of spot premiums for copper and aluminum on the most-traded contracts. If tensions in the Middle East ease marginally, copper and aluminum, which are in a continuous state of destocking, have room for a rebound.

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

[Risks] External risks

(Source: China Fortune Futures)