SMM Aluminium Morning Comment (Mar 6, 2023)

SHANGHAI, Mar 6 (SMM) – The most-traded SHFE 2304 aluminium contract opened at 18,775 yuan/mt at last Friday’s night session before closing at 18,680 yuan/mt, up 25 yuan/mt or 0.13%. LME aluminium opened at $2,398/mt last Friday and closed at $2,393.5/mt, down $6/mt or 0.25%. 

Fears of interest rate hikes in Europe and the US will continue to put pressure on the commodity market, but Chinese economic recovery and anticipations for favourable policies during the National People's Congress and the Chinese People's Political Consultative Conference (short as “Two Sessions”) will support aluminium prices. Considering that both fundamentals and macro front are intertwined with bullish and bearish factors, the short-term aluminium prices may maintain rangebound fluctuations.