SHANGHAI, Apr 18 (SMM) - Overnight, the most-traded SHFE 2305 aluminium contract opened at 18,780 yuan/mt, and rose to 18,840 yuan/mt, but then pulled back before closing at 18,765 yuan/mt, up 10 yuan/mt or 0.05%. LME aluminium opened at $2,386/mt on Monday and closed at $2,372.5/mt, down $17.5/mt or 0.73%.
The Fed’s interest rate hike seems to be coming to an end, but a deep economic recession has not yet arrived. The Chinese economy is recovering, boosting the aluminium market. On fundamentals, domestic aluminium supply is growing slowly, and power supply situation in Yunnan deserves close attention. Aluminium ingots maintained the destocking cycle.
In view of improving macro environment and slowing demand growth, aluminium prices should move rangebound in the short term.
