Aluminum prices soaring? Why?
Recently, the weak trend of the US dollar has had a positive impact on the non-ferrous metal market. The price of Lun aluminum rebounded from a low level overnight, closing at US$2146/ton, an increase of US$7, or 0.33%. Trading volume increased by 4043 hands to 16430 hands, and open interest decreased by 1892 hands to 667904 hands.
China's asymmetric interest rate cut policy in August improved market sentiment, and at the same time released a signal of steady growth, which led to the continuous recovery of macro expectations. The supporting role of these factors for the non-ferrous metal market cannot be ignored.
At present, the level of aluminum premiums is rising and inventories continue to decline. These factors support the strong trend of aluminum prices. In addition, the level of domestic ingots is still low, which means that there is no possibility of a large number of concentrated arrivals in the market in the short term, which will also help stabilize aluminum prices.
In the spot market, the trading atmosphere showed signs of improvement in general, which also had a certain boost to the trend of aluminum prices. Taking these factors into account, aluminum is expected to show an upward trend today.
In general, factors such as the weakening of the US dollar, the release of China's steady growth signal and the improvement of market sentiment have had a positive impact on the non-ferrous metal market.
