SMM Aluminum Market Morning Comment (Mar 28)

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,380 yuan/mt, with its lowest and highest at 19,355 yuan/mt and 19,450 yuan/mt before closing at 19,440 yuan/mt, up 25 yuan/mt or 0.13%. LME aluminum opened at $2,303/mt in the previous trading day, with its high and low at $2,309.5/mt and $2,276/mt respectively before closing at $2,303/mt, up $3/mt or 0.13%.

Summary: On the macro front, there were growing expectations of an interest rate cut by the European Central Bank, and the increasingly tense situation between Russia and Ukraine lifted the commodity market. Fundamentally, there are expectations for an increase in production in May, but the drought situation in Yunnan may bring uncertainty. The arrival of the traditional peak season and the continuous efforts of policies to drive demand boosted the operating rates of various processing sectors. Boosted by positive fundamentals and macro front, aluminum prices may swing on a strong note.