SMM Morning Comment For Aluminium Market On September 22

SHANGHAI, Sep 22 (SMM) – Overnight, the most-traded SHFE 2310 aluminum contract opened at 19,350 yuan/mt, with its lowest and highest at 19,280 yuan/mt and 19,385 yuan/mt before closing at 19,355 yuan/mt, down 55 yuan/mt or 0.28% compared with the previous trading day. LME aluminum opened at $2,248/mt on Thursday, then reached its high at $2248.5/mt and finally closed at $2,222/mt, a decrease of $32/mt or 1.42%
Market had digested hawkish stance of the US Fed. On fundamentals, the growth rate of domestic aluminum supply is decelerating, the import window is open, and the market's overseas aluminum ingot supply is on the rise. Due to fewer arrivals and pre-holiday stocking, aluminum ingot and billet stocks both fell in the middle of the week. However, demand is not particularly strong in the peak season, casting doubt over the sustainability of inventory drop. SHFE aluminum contract is anticipated to oscillate at a high level. Follow-up attention should be paid to domestic aluminum inventories and downstream stocking before the National Day holiday.