Aluminium Prices to Remain Rangebound amid Mixed Factors

SHANGHAI, Feb 13 (SMM) -  The most-traded SHFE 2303 aluminium contract opened at 18,575 yuan/mt at last Friday’s night session before closing at 18,515 yuan/mt, a drop of 225 yuan/mt or 1.2%. LME aluminium opened at $2,504/mt last Friday and closed at $2,455/mt, a decrease of $52/mt or 2.07%.
Production reduction in Yunnan has not yet been implemented, and market expectations for output cuts have weakened. If the scale of future production reduction meets expectations, the trading logic in the aluminium market may shift to cost, downstream consumption and inventory. Overall, the current aluminium market is filled with bearish and bullish factors, which is expected to keep aluminium prices rangebound in the short term.