On the previous trading day's night session, the most-traded SHFE aluminium 2506 contract opened at RMB 19,950 per tonne, with a high of RMB 19,995 per tonne, a low of RMB 19,920 per tonne, and closed at RMB 19,970 per tonne, down RMB 60 per tonne or 0.30 per cent from the previous close.
LME aluminium opened at USD 2,458.5 per tonne on the previous trading day, with a high of USD 2,468 per tonne, a low of USD 2,426 per tonne, and closed at USD 2,437.5 per tonne, down USD 22 per tonne or 0.89 per cent.
At the macro level, a series of domestic policies have played a positive role in stabilising the real estate market, and the domestic macro bullish atmosphere remains unchanged. In overseas markets, Trump's policy stance has been inconsistent, and there are still many uncertainties from attitude to policy implementation.
On the fundamental side, the cost side of the aluminium industry has shown stable performance, while the demand side has exhibited structural recovery characteristics. Benefiting from the continuous influx of new orders in May, there has been a boost in pre-holiday stockpiling demand for raw materials such as aluminium ingots and aluminium billets.
The de-stocking of domestic aluminium ingot inventory has provided support for aluminium prices, but suppliers have been actively selling at highs, leading to a pullback in spot premiums. Overall, whether substantial easing in Sino-US trade can be achieved remains to be observed over time. In the short term, the imbalance between bullish and bearish factors is still evident. As the transition between the off-season and peak season approaches and the PV installation rush nears its end, downstream aluminium orders are expected to decline, and the momentum for aluminium prices to rise sharply again is insufficient. It is expected that domestic aluminium prices will fluctuate mainly before the holiday.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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