SMM

SHANGHAI, December 7 (SMM) –
Overnight, the most-traded SHFE 2401 aluminum contract opened at 18430 yuan/mt, with its low and high at 18400 yuan/mt and 18485 yuan/mt before closing at 18400 yuan/mt, down 35 yuan/mt or 0.19%. LME aluminum opened at $2165.5/mt yesterday, with its high and low at $2169.5/mt and $2140/mt respectively before closing at $2141/mt, down 1.13%.
ADP employment data has fallen short of expectations for four consecutive months, which may indicate that the U.S. labor market continues to cool significantly. Domestic macroeconomic data have weakened, and the manufacturing PMI index remained below 50%. There are growing expectations for the release of domestic favorable policies at the end of the year, but it will still take time to transmit to the manufacturing industry and other sectors. In terms of fundamentals, there are no further changes expected on the supply side in the short term, and market trading logic generally focuses on the resilience of consumer demand in the off-season. The short-term macro atmosphere is negative and the off-season will pressure aluminum prices. At the same time, inventory continues to be reduced, giving aluminum prices certain support.