PBOC interest rate and RRR cuts lift aluminum prices overnight

Prices for aluminum and other base metals drifted higher overnight after the People’s Bank of China (PBOC) unexpectedly cut interest rate and reserve requirement ratio (RRR) on Tuesday. The rally in SHFE aluminum will be fleeting, Shanghai Metals Market understands.

Three major US stock markets dived before the closing bell rang overnight after opening higher. Meanwhile, China’s A-share market also moved lower after a high opening today. These suggest that market sentiment remains fragile, which will act as a drag on base metals, including aluminum.

Besides, poor market fundamentals will be a great concern. Production cuts by Chinese aluminum smelters are far from enough to reverse supply glut, given massive commissioning of new capacity.

SHFE 1510 aluminum, the most active one, dipped to 11,860 yuan per tonne after starting higher at 11,945 yuan per tonne on Wednesday.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.