Views: 0 Author: Site Editor Publish Time: 2023-05-29 Origin: Site
On May 29, the aluminum market experienced a surge in prices, driven by a combination of factors including overseas macro pressures, positive developments in the US debt ceiling negotiation, and limited production capacity at the supply end. Let's take a closer look at the details and overall market reaction.
The London Metal Exchange was closed on May 29 due to the UK Spring Bank holiday, resulting in no updates or trading activities.
In the domestic market, the main month 2307 contract for Shanghai aluminum opened at 18,110 yuan/ton on May 29. Throughout the day, it reached a peak of 18,180 yuan/ton and hit a low of 17,940 yuan/ton. The previous day's settlement was at 17,860 yuan/ton, and it closed near 18,025 yuan/ton, representing an increase of 165 yuan or 0.92%. The trading volume for the main month 2307 contract was 274,120 hands, a reduction of 227,588 hands, while the position decreased by 13,163 hands to reach 243,608 hands.
Several factors contributed to the surge in aluminum prices on May 29. Firstly, the easing of overseas macro pressures alleviated concerns within the market. Additionally, positive progress in the US debt ceiling negotiation instilled optimism among investors, encouraging a release of market positivity. Furthermore, limited production capacity at the supply end, coupled with tight actual spot supply of aluminum, supported price levels. The aluminum ingot inventory remained at a low level, sustaining the price support and contributing to the ongoing strong shocks in the short term.
In the spot market, the Yangtze River region reported transaction prices ranging from 18,340 to 18,380 yuan/ton, with an increase of 200 yuan/ton. The premium ranged from 100 to 140 yuan. In Guangdong, spot prices were observed between 18,330 and 18,380 yuan/ton, with a rise of 210 yuan/ton. The premium in this region ranged from 90 to 140 yuan. Meanwhile, the Huatong price stood between 18,380 and 18,420 yuan/ton, reflecting an increase of 180 yuan/ton.
The spot market exhibited a negative feedback loop, indicating a lack of market activity and price stabilization. Market participants focused on managing their inventories and covering goods, resulting in limited trading. Downstream industries adopted a more cautious approach, leading to a decrease in mining activities. As a result, the overall market reacted with a sense of oversupply, creating a situation where prices were impacted.
The surge in aluminum prices on May 29 was driven by a combination of factors such as eased overseas macro pressures, positive developments in the US debt ceiling negotiation, limited production capacity, and tight actual spot supply. The spot market, however, experienced a negative feedback loop, indicating a market reaction of oversupply. It is important to monitor these market dynamics and factors closely as they continue to shape the aluminum industry. For those seeking aluminum products such as lamp shades, traffic signs, and aluminum plates, our company is ready to provide assistance and welcome inquiries.
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