Aluminium Prices Moved Rangebound as Market Awaited Fed Decision

The most active SHFE 2305 aluminium contract closed at 18,155 yuan/mt overnight, an increase of 45 yuan/mt, or 0.25%, from the previous trading day. LME aluminium closed at $2,269/mt, down $14.5/mt or 0.63%, from the previous trading day.

On the macro level, the risk of overseas banks has been downgraded and the market generally believes that the Fed may slow down raising interest rates. The US dollar index fell and metals rose overnight. On the fundamentals, the domestic supply side has recovered slightly, and the current improvement in downstream consumption has driven the rapid destocking of aluminum. With strong support from fundamentals, aluminum prices will remain rangebound in the short term.