SMM Aluminum Market Morning Comment (Aug 7)

Published: Aug 7, 2024 09:18

Source: SMM

Save

Overnight, the most-traded SHFE aluminum 2409 contract opened at 18,910 yuan/mt, reaching a high of 19,030 yuan/mt and a low of 18,885 yuan/mt, and closed at 19,020 yuan/mt, up 225 yuan/mt, an increase of 1.20%.

Market: Overnight, the most-traded SHFE aluminum 2409 contract opened at 18,910 yuan/mt, reaching a high of 19,030 yuan/mt and a low of 18,885 yuan/mt, and closed at 19,020 yuan/mt, up 225 yuan/mt, an increase of 1.20%. The previous trading day, LME aluminum opened at $2,263.5/mt, reached a high of $2,305/mt and a low of $2,238/mt, and closed at $2,301/mt, up $39/mt, an increase of 1.72%.

Summary: On the macro side, the Chinese government continues to boost the domestic economy, the US Fed's rate cut expectations are increasing, and regional conflict situations are escalating, providing upward momentum for aluminum prices. On the fundamentals side, aluminum supply is growing while demand remains bleak. Preliminary estimates for July's aluminum production are around 3.68 million mt, with social inventory at a high level for the same period, putting pressure on aluminum prices. In the short term, both macro and fundamental factors are mixed, and aluminum prices are expected to fluctuate widely.

Market forecast Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

[SMM Analysis] Global Scrap Aluminum Resource Retention Trend Gains Momentum: EU, US, Japan, UAE & South Africa Policies

As resource security and decarbonization become increasingly important, major economies are strengthening efforts to retain aluminum scrap. From the EU's review of export controls and the U.S. strategic asset proposal to Japan's circular economy initiatives and policies in the UAE and South Africa, these developments could reshape global scrap flows and affect secondary aluminum markets.

8 hours ago

10 hours ago

Chalco's $1.82B Aluminum Foil Project 40% Complete, Aims for 2027 Operation and $4B Output

The total investment of the Chalco Aluminum Foil New Energy High-Precision Plate, Sheet, Strip and Foil Project is RMB 1.82 billion, and physical progress has currently reached 40%. The roofing of the factory building will be completed by June 30 this year, and equipment commissioning and acceptance will be finished by month-end December, followed by trial production. It is understood that the project is expected to be officially completed and put into operation on May 31, 2027. After commissioning, it will achieve an annual output of 170,000 mt of high-precision aluminum plate/sheet, strip and foil, primarily used for the positive electrode current collectors of high-end power batteries, with an output value projected to reach 4 billion yuan.

10 hours ago

Huaibei High-tech Zone Signs Deal for Advanced Aluminum Composite Materials Project

On the morning of June 2, a project with an annual capacity of 30,000 mt of aluminum-based metal composite materials and 5 million pieces of deep-processed material products was signed in Huaibei High-tech Zone. The project integrates new material R&D, intelligent manufacturing, and precision deep processing. Its products are mainly applied in NEVs, energy storage equipment, PV, wind power, and other fields.

10 hours ago