Aluminum Market Bounces Back on SMM, LME Surge

Shanghai aluminum prices closed at 20,765 yuan/ton on Thursday (September 25), up 0.39%; while LME prices closed at 2,664 USD/ton, up 9.5%. SMM spot prices reached 20,770 yuan/ton, up 90 yuan; Nanchu prices reached 20,710 yuan/ton, up 90 yuan with a discount of 60 yuan.
Electrolytic aluminum ingot inventories remained at 617,000 tons (down 21,000 tons from the previous month), aluminum bar inventories in major consuming regions were 123,000 tons (down 7,000 tons).

The US economy recorded positive signals: GDP in the second quarter increased by 3.8% (higher than forecast), the core PCE index was revised up to 2.6%, initial jobless claims fell to 218,000, the lowest level since July. These data reduced expectations for the Fed to cut interest rates soon.

Basically, pre-holiday stockpiling demand along with reduced inventories have supported aluminum prices to stop adjusting, maintaining a stable state – with slight fluctuations.

Source: Jinyuan Futures