SMM aluminum market morning comment Jul 10: US Inflation Pressure Eases, Downstream Consumption Remains Sluggish

SHANGHAI, July 10 (SMM) –Overnight, the most-traded SHFE aluminum 2408 contract opened at 20,415 yuan/mt, reaching a high of 20,440 yuan/mt and a low of 20,270 yuan/mt, and closed at 20,300 yuan/mt, down 160 yuan/mt from the previous trading day, a decrease of 0.78%.

In the previous trading day, LME aluminum opened at $2,534/mt, reached a high of $2,536.5/mt and a low of $2,490.5/mt, and closed at $2,497/mt, down $32/mt from the previous closing price, a decrease of 1.27%.

Macro-wise, US inflation pressure has decreased, and expectations for a Fed rate cut have increased. Fundamentally, domestic aluminium supply is growing, with some capacity yet to resume. Downstream aluminum processing and end-user demand have entered the off-season, with some sectors experiencing demand shocks, leading to a continuous decline in the operating rate of the aluminum processing industry and inventory accumulation. The aluminum market currently lacks driving factors, and short-term aluminum prices are expected to fluctuate. However, close attention should be paid to macro sentiment changes that may cause aluminum price volatility.