SMM Morning Comment For Aluminium Market On November 20

SHANGHAI, November 20 (SMM) –The most-traded SHFE 2312 aluminum contract opened at 18870 yuan/mt at last Friday’s night session, with its low and high at 18805 yuan/mt and 18870 yuan/mt before closing at 18825 yuan/mt, down 40 yuan/mt, or 0.21%. LME aluminum opened at $2212.5/mt in the previous trading day, with its low and high at $2196/mt and $2218/mt respectively before closing at $2216/mt, up $4.5/mt or 0.2%. On the macro level, expectations for interest rate hikes in Europe and the United States continue to cool, and China continues to promote economic recovery. In terms of fundamentals, Yunnan's production reduction coincides with the arrival of the off-season, and both supply and demand are reduced. The reduction on the demand side still needs to be observed. SHFE aluminum may maintain a sideways trend in the short term, and we need to pay close attention to the weakening pace of demand and cost changes caused by raw materials.