SMM Aluminum Market Morning Comment (Feb 23)

Overnight, the most-traded SHFE 2404 aluminium contract opened at 18,785 yuan/mt, with high and low at 18,800 yuan/t and 18,685 yuan/mt before closing at 18,740 yuan/mt, down 0.43%. LME aluminium opened at $2,225/mt on Thursday, with its high and low at $2,234.5/mt and $2,187.5/mt respectively before closing at $2,201/mt, down 0.83%.
The US manufacturing PMI hit a new high. Many domestic banks intensively lowered deposit interest rates, and favourable policies were frequently introduced amid loose financial market. In terms of fundamentals, the cost of aluminium increased MoM in January. With work and production continuing to resume after CNY holiday, low inventory and weak inventory growth will support aluminium prices.