SMM Morning Comment For Aluminium Market On August 30

SHANGHAI, Aug 30 (SMM) –

Overnight, the most-traded SHFE 2310 aluminium contract opened at 18,660 yuan/mt, with the lowest and highest prices at 18,650 yuan/mt and 18,725 yuan/mt before closing at 18,700 yuan/mt, up 50 yuan/mt or 0.27% from the previous trading day. LME aluminium opened at $2,152/mt on Tuesday with its high and low at $2,179.5/mt and $2,152/mt respectively before closing at $2,169/mt, an increase of $18.5/mt or 0.86% from the previous trading day.

On the macro side, although there are still many uncertainties in overseas markets, the positive impact of current domestic favorable policies persists. In the fundemantals, with the upcoming arrival of the traditional peak season in September, market sentiment improved. And aluminum ingots inventory remained low, giving support to aluminum prices. Domestic aluminum market maintained 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 fluctuate upward this week. In the follows-up, market participators still need to pay attention to changes in domestic aluminum inventories and downstream recovery.