Aluminium Prices Remain rangebound, Eyes on Consumption Recovery

SHANGHAI, Feb 23 (SMM) - The most-traded SHFE 2304 aluminium contract opened at 18,785 yuan/mt overnight and closed at 18,765 yuan/mt, a drop of 30 yuan/mt or 0.16%. LME aluminium opened at $2,458.5/mt last night and closed at $2,413/mt, down $46/mt or 1.87%.

On the supply side, the news of production cuts in Yunnan was gradually digested by the market. On the demand side, aluminium prices retreated slightly in recent two days, while the supply available in the spot market was sufficient, thus downstream buyers were not keen on picking up cargoes amid price decline. In general, there has been no signs of a peak reason according to current purchasing demand in the spot market and the aluminium inventory data. Therefore, aluminium prices are expected to remain rangebound before the consumption really picks up.