SHFE and LME aluminum both close with losses (July 18), short-term SHFE aluminum to stay rangebound

Overnight, SHFE 2308 aluminum contract opened at 18155 yuan/mt, with low and high at 18120 yuan/mt and 18235 yuan/mt, closing down 0.11% at 18230 yuan/mt. LME aluminum opened at $2255/mt Tuesday, with low and high at $2201/mt and $2262/mt before closing down 2.28% at $2205.5/mt.

On the macro side, the expectations for the Fed’s rate hike slowdown has been largely digested by the market, and the future pace of the Fed’s rate hike remains to be observed. The domestic aluminum supply is still high, and the demand is poor. The hot weather in the southwest caused the market to worry about the power supply in the area. Additionally, the cost of aluminum rebounded under the drive of alumina, which brought support to the aluminum price. SMM believes that the short-term SHFE aluminum prices will mainly move in a narrow range.