SMM Morning Comment For Aluminium Market On November 10

SHANGHAI, November 10(SMM) –

The most-traded SHFE 2312 aluminum contract opened at 19105 yuan/mt overnight, with its low and high at 19205 yuan/mt and 19190 yuan/mt before closing at 19145 yuan/mt, down 5 yuan/mt. LME aluminum opened at $2261.5/mt on Thursday, with its low and high at $2233/mt and $2266/mt respectively before closing at $2238/mt, down $26/mt, or a decrease of 1.13%.

There is still great uncertainty in overseas macro front. U.S. economic data shows that the U.S. economy is resilient. The U.S. dollar index fluctuates at a high level, suppressing commodities. Favorable stimulus policies in China will continue to boost aluminum consumption at the end of the year. In terms of fundamentals, aluminium smelters in Yunnan have started to cut production, with 1.15 million mt of capacity estimated to be reduced. The consumption is switching from peak season to off-season, but the growth of aluminum ingot social inventory has slowed down. Weak consumption and inventory pressure will keep aluminum prices from rising in short term. However, in the medium and long term, tightening supply and positive macro should bolster aluminum prices.