US PPI Data Below Expectations, Alumina Price Fluctuating at Highs Boost Aluminum Market

SMM, Aug 14: Overnight, the most-traded SHFE aluminum 2409 contract opened at 19,040 yuan/mt, reaching a high of 19,140 yuan/mt and a low of 18,965 yuan/mt, and closed at 19,085 yuan/mt, up 5 yuan/mt or 0.03%. On Tuesday, LME 3M aluminum opened at $2,306.5/mt, hitting a high of $2,340/mt and a low of $2,290/mt, and closed at $2,326/mt, up $17/mt or 0.74%.

Macro side, US July PPI was lower than expected, raising expectations for rate cuts and boosting the metals market, but attention is still needed on subsequent CPI data. Fundamentals, domestic aluminum operating capacity is gradually stabilizing, and supply side is peaking. Cost side, alumina market is fluctuating at high levels, providing strong support for aluminum costs. In August, downstream aluminum consumption shows signs of stabilizing and recovering, with social inventory showing slight destocking, releasing positive signals. SMM expects short-term aluminum prices to go up from lows.