Mixed Fundamentals to Keep Aluminium Prices Rangebound

SHANGHAI, Feb 10 (SMM) -  The most-traded SHFE 2303 aluminium contract opened at 18,930 yuan/mt overnight and moved around 19,000 yuan/mt, showing a cross-star pattern at the end of the session. LME aluminium opened at $2,488/mt on Thursday, and dropped to a low of $2,460/mt, but then returned to $2,500/mt, and finally closed at $2,507/mt, ending six-day losing streak.
From the perspective of the supply side, smelters in Yunnan are subject to power rationing. Transactions in the spot market have become increasingly active as downstream purchases have begun to pick up, forming support for aluminium prices. However, the inventory of aluminium ingots is still in a state of accumulation, with no obvious sign of inflection point. Therefore, aluminium prices are expected to remain in a narrow range.