As of 11:30 that day, the SHFE aluminum main continuous contract was quoted at 25,345 yuan/mt, a sharp increase of 1,100 yuan from the previous day's settlement price, representing a gain of 4.54%. Open interest for SHFE aluminum rose by approximately 68,000 lots in a single day, indicating a significant boost in market trading activity. The core drivers behind this unusual strength in SHFE aluminum prices stem from two major factors: first, the escalation of geopolitical conflicts between the U.S. and Iran has caused notable disruptions in aluminum product trade; second, against the backdrop of position limits in the precious metals market, capital has shown a trend of diversifying into the base metals sector; and third, recent heightened expectations for production cuts at domestic alumina refineries have further bolstered overall market bullish sentiment.
Risk Warning: The current surge in SHFE aluminum prices is driven by event-driven factors and capital inflows, with market trading sentiment in a phase of heightened excitement. Investors should remain vigilant against potential sentiment cooling and price correction risks triggered by multiple factors.
![Aluminum Liquid Aluminum Proportion Increased More Than Expectations in May, Expected to Edge Up in June [SMM Analysis]](https://imgqn.smm.cn/usercenter/JnyfJ20251217171654.jpg)
![Aluminum Billet Processing Fees Broke Through in May, Supply-Side Disruptions Not to Be Ignored [SMM Analysis]](https://imgqn.smm.cn/production/admin/votes/imagesSDWVM20240508153016.png)
