SMM Morning Comment For Aluminium Market On December 11

At last Friday’s night session, the most-traded SHFE 2401 aluminum contract opened at 18470 yuan/mt, with its lowest and highest at 18380 yuan/mt and 18530 yuan/mt before closing at 18395 yuan/mt, down 95 yuan/mt or 0.51%. LME aluminum opened at $2137/mt last Friday, with its high and low at $2161.5/mt and $2130/mt respectively before closing at $2134/mt, up 0.14%.
On the macro front, the market is beginning to bet on the Federal Reserve to cut interest rates next year. There are growing expectations for the release of favorable policies in China at the end of the year, but it will still take time to transmit to the manufacturing industry and other sectors. In terms of fundamentals, there are no further changes expected on the supply side in the short term, and market trading logic generally focuses on the resilience of consumer demand in the off-season. Aluminum prices may be relatively weak, but should find support from falling stocks.