SMM Morning Comment For Aluminium Market On December 8

SHANGHAI, December 8 (SMM) – Overnight, the most-traded SHFE 2401 aluminum contract opened at 18410 yuan/mt, with high and low at 18420 yuan/mt and 18305 yuan/mt before closing at 18325 yuan/mt, down 105 yuan/mt or 0.57%. LME aluminum opened at $2146/mt yesterday, with its high and low at $2156.5/mt and $2131/mt respectively before closing at $2131/mt, down 0.47%.
On the macro front, the annualized quarterly rate of real GDP in the United States in the third quarter increased from 4.9% to 5.2%, the fastest growth rate in the past two years. Inventories and government spending were the main reasons for the GDP increase. The market began to place bets on interest rate cut next year. Domestic macroeconomic data have weakened, and the manufacturing PMI index remained below 50%. There are growing expectations for the release of domestic favorable policies at the end of the year, but it will still take time to transmit to the manufacturing industry and other sectors. In terms of fundamentals, there are no further changes expected on the supply side in the short term, and market trading logic generally focuses on the resilience of consumer demand in the off-season. The short-term macro atmosphere is negative and the off-season will pressure aluminum prices. At the same time, inventory continues to be reduced, giving aluminum prices certain support.