The aluminium futures contract in January at Shanghai Metal Exchange is expected to fluctuate between CNY16,300 and 16,800 yuan/mt ($2,493.77 -2,570.26/mt). A report published by the China Nonferrous Metal Industry Association suggested that the macro sentiments and the fundamentals are bullish. The pressure on the supply side is not obvious and the consumption is good, however, current inventory is still at a low level.
The short-term aluminium price is likely to fluctuate at higher level. The 2101 contract is expected to fluctuate between CNY16,300 and 16,800 yuan/mt ($2,493.77 -2,570.26/mt).
China Nonferrous Metal Industry Association data reveals that China reported a weekly shortage of 4,000mt of aluminium ingots in the prior week. Chongqing had a total of 10,000mt of aluminium ingots, and 607,000mt of aluminium ingots in the consumer area, with weekly storage of 4,000mt.
The association shared that Chinese domestic social inventory of electrolytic aluminium was 101,000mt in Shanghai, 16.5mt in Wuxi, 50,000 mt in Hangzhou, 40,000mt in Gongyi, 149,000mt in Nanhai, 42,000mt in Tianjin, and 6,000mt in Linyi.