SHANGHAI, May 15 (SMM) - The most-traded SHFE 2306 aluminium contract opened at 17,990 yuan/mt at last Friday’s night session, with its low and high at 17,970 yuan/mt and 18,135 yuan/mt before closing at 18,030 yuan/mt, up 160 yuan/mt or 0.9%.
LME aluminium opened at $2,214/mt last Friday, with its low and high at $2,203.5/mt and $2,245/mt respectively before closing at $2,244/mt, an increase of $31/mt or 1.4%.
The US debt crisis escalated, while Chinese macro data fell short of expectations, thus market panic has soared. While aluminium ingot social inventories in China kept falling, the demand outlook is pessimistic. Aluminium output continued to rise, and aluminium prices lack cost support. SMM expects the short-term aluminium prices to come under downward pressure. Market players need to closely watch macro aspect and the supply in Yunnan.
