SHFE & LME aluminum prices climb
The most-traded SHFE 2308 aluminum contract closed at CNY 18,045/ton on Monday, an increase of CNY 55. LME aluminum finally rose by US$13, settling at US$2,154/ton.
The resumed aluminum capacity in Yunnan province, a main aluminum producing area in China, will bring pressure on the supply side in late July. Besides, due to the off-season of downstream consumption, the social inventory of aluminum ingot was expected to further pile up.
The short-term aluminum price will be suppressed by the recovered aluminum capacity in Yunnan province and the weakening consumption margin; however, low inventory will keep the resilience of SHFE front month aluminum contracts.
