SHANGHAI, Apr 24 (SMM) - The most-traded SHFE 2306 aluminium contract opened at 18,960 yuan/mt at last Friday’s night session, with its low at 18,875 yuan/mt before closing at 18,955 yuan/mt, down 55 yuan/mt or 0.29%. LME aluminium opened at $2,422/mt last Friday and closed at $2,402/mt, a drop of 0.85%.
On the macro level, the recovery of Chinese economy is in stark contrast to stubbornly high inflation in the US. There are growing supply concerns. Aluminium ingot social inventory remains in a state of destocking, with downstream consumption in the peak season. However, the decline in social inventory may slow down as downstream purchases may weaken after aluminium prices have climbed above 19,000 yuan/mt. Capital may flow out of the market due to risk aversion before the upcoming Labour Day holiday. Aluminium prices are extended to lose upward momentum.
