SMM Aluminum Market Morning Comment (May 10)

Overnight, the most-traded SHFE 2406 aluminum contract opened at 20,600 yuan/mt, with the highest and lowest prices at 20,675 yuan/mt and 20,560 yuan/mt before closing at 20,655 yuan/mt, up 55 yuan/mt or 0.27%. LME aluminum opened at $2,570/mt in the previous trading day, with its low and high at $2570/mt and $2,577/mt respectively before closing at $2,573/mt, up 0.19%.

Summary: The domestic macro atmosphere was bullish. Supporting real estate and stimulating consumption still dominated the market. The inventory growth after the holiday was better than expected. The inventory of aluminum ingots and billets in major consumption areas dropped slightly, but high aluminum prices suppressed downstream consumption. The inventory of aluminum ingots and aluminum billets declined at a slower pace. In the short term, supply-demand imbalance is not prominent. Low inventory and bullish demand can support aluminum price. It is expected that the aluminum prices may move rangebound.