SMM Morning Comment For Aluminium Market On December 13

SHANGHAI, December 13 (SMM) –
Overnight, the most-traded SHFE 2401 aluminum contract opened at 18435 yuan/mt, with high and low at 18485 yuan/mt and 18375 yuan/mt before closing at 18405 yuan/mt, down 25 yuan/mt or 0.14%. LME aluminum opened at $2121/mt yesterday, with its high and low at $2143/mt and $2116/mt respectively before closing at $2124/mt, flat from the previous trading day.
On the macro front, the market is beginning to bet on the Federal Reserve to cut interest rates next year. There are growing expectations for the release of favorable policies in China at the end of the year, but it will still take time to transmit to the manufacturing industry and other sectors. In terms of fundamentals, there are no further changes expected on the supply side in the short term, and market trading logic generally focuses on the resilience of consumer demand in the off-season. Aluminum prices may be relatively weak, but should find support from falling stocks.