SMM Aluminum Market Morning Comment (Apr 3)

Overnight, the most-traded SHFE 2405 aluminum contract opened at 19,885 yuan/mt, with its lowest and highest at 19,810 yuan/mt and 19,885 yuan/mt before closing at 19,860 yuan/mt, up 115 yuan/mt or 0.58%. LME aluminum opened at $2,342/mt in the previous trading day, with its high and low at $2,387.5/mt and $2,332/mt respectively before closing at $2,372/mt, up $35/mt or 1.5%.

Summary: On the macro level, Fed officials made dovish remarks, but economic data continued to perform well, further confirming the expectation that the Fed is not in a hurry to cut interest rates. Recently, the domestic manufacturing industry returned to the expansion terriotory, and the policy side once again made efforts to promote the development of domestic new energy vehicles and lay a solid foundation for downstream consumption. Fundamentally, due to the increase in the arrival of aluminum ingots in Wuxi, the destocking performance is not stable. However, the rigid demands of downstream enterprises gradually showed resilience. The operating rate improved and maintained an upward trend in April, which provided good support for aluminum prices.