The strength of the U.S. dollar is exerting pressure, causing a setback in the prices of risk assets. Overnight, London aluminum continued to weaken, with a 0.4% decline. The incident in Xinjiang reportedly led to a reduction in production, which has supported aluminum prices, but the impact on production remains unclear. The upside potential for aluminum prices is currently considered limited, and it is expected that aluminum prices today will experience limited fluctuations.
The resilient U.S. dollar is adversely affecting the prices of risk assets. London aluminum exhibited a weak and fluctuating trend, closing down by $9 at $2,238 per ton, a 0.40% decrease. Trading volume decreased by 2,875 lots to 14,100 lots, and open interest decreased by 2,662 lots to 640,131 lots. In the evening, Shanghai aluminum showed a slightly strong and fluctuating trend, with narrowing gains within the trading session. The latest closing price for the main 2312 contract was CNY 19,205 per ton, up CNY 20 or 0.10%.
As of November 1st, the latest LME aluminum inventory was reported at 472,700 metric tons, a decrease of 2,025 metric tons or a 0.43% decline compared to the previous trading day.
On November 1st, the spot aluminum prices were as follows: The comprehensive AOO aluminum ingot price in the Yangtze River region was CNY 19,135 per ton, up CNY 55 per ton. The AOO aluminum ingot price in the Central Aluminum East region was CNY 19,140 per ton, up CNY 60 per ton. The incident in Xinjiang, which resulted in a production reduction, has supported aluminum prices, but its impact on production remains uncertain. Regarding demand, market trading activity is relatively low, downstream buyers are not very active in entering the market, and high market prices have deterred buyers, leading to limited transactions. Overall, the aluminum market lacks strong consumption prospects, which is placing a certain level of restraint on aluminum prices. Therefore, the outlook for upward price movements in aluminum is currently seen as limited, and it is expected that aluminum prices today will experience limited fluctuations.