SMM Aluminum Market Morning Comment (Apr 2)

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,760 yuan/mt, with its lowest and highest at 19,710 yuan/mt and 19,805 yuan/mt before closing at 19,725 yuan/mt, up 5 yuan/mt or 0.03%.

Summary: From a macro perspective, the US ISM manufacturing PMI data returned to the expansion territory, the Fed’s hawkish remarks have been verified by economic data, and interest rate cut expectations may be postponed again. The domestic manufacturing PMI returned to the expansion territory in March, the People's Bank of China launched standing lending facility, and the stability of the financial market will help maintain stable operation of the economy. Fundamentally, the recovery of downstream consumption is in line with expectations. Aluminum ingot inventories continued to decline this week. The operating rate of downstream enterprises improved and was expected to grow in April. Stable market demand provided support for aluminum prices.