Aluminium Prices Exceed 19,000 yuan/mt, But Further Upside Room Depends On When Fundamentals Improve Significantly

SHANGHAI, Apr 19 (SMM) - As the Fed’s interest rate hike seems to be coming to an end, market focus has shifted onto market fundamentals. The aluminium output in China is growing slowly. There are rumours of power rationing on smelters in Yunnan. Market opinions split on whether the smelters in Yunnan will cut output or resume production in the future. The overall end demand continued to pick up, but it is still not as strong as expected. Aluminium ingots maintained the destocking cycle. Aluminium prices have climbed above 19,000 yuan/mt mark, but further rise depends on improving fundamentals.

Overnight, the most-traded SHFE 2305 aluminium contract opened at 19,030 yuan/mt, and rose to 19,060 yuan/mt before closing at 19,020 yuan/mt, up 150 yuan/mt or 0.79%.