SMM Aluminum Market Morning Comment (Apr 29)

At last Friday’s night session, the most-traded SHFE 2406 aluminum contract opened at 20,625 yuan/mt, with its lowest and highest at 20,575 yuan/mt and 20,770 yuan/mt before closing at 20,670 yuan/mt, up 45 yuan/mt or 0.22%. LME aluminum opened at $2,572.5/mt in the previous trading day, with its high and low at $2,600.5/mt and $2,555.5/mt respectively before closing at $2,560.5/mt, down $10.5/mt or 0.41%.

Summary: Fundamentally, overseas deliverable metals remained tight. The import window closed. Domestic aluminum supply maintained a growth trend. Downstream operating rate remained stable. Aluminum ingot inventories continued to drop. In the short term, low inventory can support aluminum prices, but we should pay close attention to the impact of macro front on market sentiment.