SMM Morning Comment For Aluminium Market On August 25

SHANGHAI, Aug 25 (SMM) –

Overnight, the most-traded SHFE 2309 aluminium contract opened at 18,575 yuan/mt, with the lowest and highest prices at 18,525 yuan/mt and 18,635 yuan/mt before closing at 18,600 yuan/mt, down 15 yuan/mt or 0.08% from the previous trading day. LME aluminium opened at $2,177/mt on Thursday with its high and low at $2,182.5/mt and $2,154/mt respectively before closing at $2,154.5/mt, a decrease of $20.50/mt or 0.94% from the previous trading day.

On the macro side, August PMI data of Europe and the US was lower than expected and US index rebounded, causing industrial products’ prices under pressure. Market participants are waiting for clues from the Jackson Hole Conference on Friday. In the fundamentals, aluminum market maintains a state of simultaneous increase in supply and demand. The proportion of molten aluminum output remained high while aluminum ingot production was limited. The influx of imported aluminum ingots after the import window opened and the release of Southwest capacity may impede destocking progress, but inventory accumulation amount won’t be large. Overall, the imbalance between supply and demand is not prominent. Aluminum prices may fall back after digesting positive macro sentiment next week.