SMM Aluminum Market Morning Comment (Mar 14)

The most-traded SHFE 2404 aluminum contract opened at 19,270 yuan/mt overnight, with its low and high at 19,225 yuan/mt and 19,290 yuan/mt before closing at 19,255 yuan/mt, up 20 yuan/mt or 0.10%. LME aluminum opened at $2,261/mt on Wednesday, with its high and low at $2,274.5/mt and $2,254/mt respectively before closing at $2,262.5/mt, down $0.5/mt or 0.02%.

On the macro level, State Council released favourable policies to boost demand. Attitude towards cutting interest rates swung in Europe and the US, which coupled with the US presidential election, bringing uncertainty to aluminum prices. In the short term, the import window for aluminium ingots closed, and inventory is likely to peak, supporting aluminum prices. We need to pay close attention to recovery in consumption during the peak season and the fluctuation of expectations for overseas interest rate cuts.