SHFE Aluminium Will Hover Sideways Under The Influence Of Macro And Fundamentals

SHANGHAI, Jul 4 (SMM) – The most-traded SHFE 2308 aluminium contract opened at 18,090 yuan/mt overnight, with its low and high at 18,045 yuan/mt and 18,125 yuan/mt before closing at 18,100 yuan/mt. It rose 65 yuan/mt or 0.36%.

LME aluminium opened at $2,157/mt on Monday, with its low and high at $2,140/mt and $2,173/mt respectively before closing at $2,161/mt, up $5/mt or 0.23%.

The market is paying close attention to US non-farm payrolls data to be released on Friday in order to find clues about the health of the economy. At the same time, the market expects stimulus policy by the Chinese government. Supply pressure may appear in late July. At present, the domestic social inventory of aluminium ingots is still at a low level. However, as aluminium smelters produce more ingots rather than liquid aluminium and downstream consumption weakens, the aluminium ingot social inventory may show a slight accumulation. In the short term, SHFE aluminium will hover sideways.