SHANGHAI, Apr 20 (SMM) - Overnight, the most-traded SHFE 2305 aluminium contract opened at 19,025 yuan/mt, with its high at 19,115 yuan/mt before closing at 19,085 yuan/mt, up 85 yuan/mt or 0.45%. LME aluminium opened at $2,436/mt on Wednesday and closed at $2,450/mt, up $10.5/mt or 0.43%.
As the Fed’s interest rate hike seems to be coming to an end, market focus has shifted onto market fundamentals. In the current aluminium market, both supply and demand are growing. The supply increase was mainly contributed by Guizhou and Sichuan. Yet, smelters in Yunnan are still at risk of power rationing. The overall end demand continues to pick up, but it is still not as strong as expected. The bigger-than-expected decline in aluminium ingot inventory will support aluminium prices. Aluminium prices have climbed above 19,000 yuan/mt, but continued rise depends on further improvement of fundamentals.
