Shouchuang Futures: LME Aluminum Continues to Reach New Highs, Driving Shanghai Aluminum Higher

The Strait blockade continues, intensifying tight aluminum market supply.
LME spot premium soars to the highest since 2007, with the LME spot aluminum premium over three-month futures reaching $97 per ton on May 29.
LME aluminum inventories continue to decline, causing aluminum prices to not only return to $3,700 but also to keep rising toward $3,800, approaching the historical high in 2022.
As LME aluminum prices continue to rise, domestic Shanghai aluminum prices have also shifted from weak to strong, rising over 2% today.
More importantly, recent aluminum ingot stocks have been continuously depleting, decreasing from about 1.5 million tons to 1.38 million tons.
High prices, while unfavorable for traditional domestic consumption, are supported by rebounding overseas demand and sustained demand from new production capacities.
However, macroeconomic factors and fundamentals have yet to resonate strongly.
Although domestic aluminum prices may reach around 25k yuan, breaking new highs remains challenging.
Buying on dips remains the mainstream strategy. (First Capital Futures)
XAL-1.21%
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