SMM Aluminium Morning Comment (Mar 1, 2023)

SHANGHAI, Mar 1 (SMM) - The most-traded SHFE 2304 aluminium contract opened at 18,450 yuan/mt overnight before closing at 18,435 yuan/mt, a drop of 25 yuan/mt or 0.14%. LME aluminium opened at $2,370/mt on Tuesday and closed at $2,372/mt, a decrease of $4.5/mt or 0.19%. 

In terms of fundamentals, the resumption of aluminium production in Sichuan, Guizhou and other places is relatively slow, and there are few supply-side disturbances in the short term. Spot transactions have been weak in recent days. The continuous accumulation of social inventory weighed on aluminium prices. On the whole, rising inventory and expectations for interest rate hike will keep aluminium prices in check. Before consumption shows signs of substantial improvement, aluminium prices will remain rangebound.