Latest Update in the China Aluminum Market

Shanghai nonferrous metals closed all with gains as the macro sentiment has been boosted by a series of bullish news. The National Development and Reform Commission (NDRC) said that the country is capable of dealing with changes beyond expectations in the face of the 5.5% GDP growth target.

With the holding of some meetings at national level in China, the macro environment turns more optimistic, pulling up non-ferrous metals prices and relative stocks. As of 14:47 Beijing time, Nanshan Aluminum (600219), Yatai Sci-Tech (002540), Mingtai Al. (601677) and Hongchuang Aluminium (002379) hit limit up.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Jun 28, 2022

Most industrial metals prices dropped amid extensive worries over economic recession. SHFE aluminium fluctuated in a wide range yesterday (June 27) with signs of stabilising. The contract closed the day with a narrow loss of 0.23% to 19,135 yuan/mt.

SHFE and LME base metals closed mostly with gains as the shorts withdrew from the market after paying off. The market sentiment, on the other hand, has also stabilised as the US core durable goods orders grew by 0.5% in May, adding credibility to Fed Chairman Powell's assertion that the economy is strong enough to withstand interest rate hikes to curb the impact of inflation.

Shanghai nonferrous metals closed mixed today as the market pessimism, triggered by aggressive rate hikes in Europe and the US as well as less-than-expected economic readings, has been digested to some extent.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Jun 27, 2022

SHANGHAI, Jun 27 (SMM) – The aluminium ingot social inventories across China’s eight major markets totalled 746,000 mt as of June 27, down 4,000 mt from last Thursday and 176,000 mt from the end of May.