SMM Aluminum Market Morning Comment (Mar 29)

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,500 yuan/mt, with its lowest and highest at 19,495 yuan/mt and 19,605 yuan/mt before closing at 19,580 yuan/mt, up 105 yuan/mt or 0.54%. LME aluminum opened at $2,300.5/mt in the previous trading day, with its high and low at $2,340/mt and $2,292/mt respectively before closing at $2,335/mt, up $32/mt or 1.39%.
Summary: On the macro front, there were growing expectations of an interest rate cut by the European Central Bank, and the increasingly tense situation between Russia and Ukraine lifted the commodity market. The traditional peak season and the continuous efforts of policies to drive demand boosted the operating rates of various processing sectors. Aluminum ingot inventory began to drop in the week. Boosted by positive fundamentals and macro front, aluminum prices may swing on a strong note.