Expectations for US Fed interest rate cuts rise again, aluminium prices hover at highs
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Update time : 2025-11-25 15:35:25
Futures: On the night session of November 24, the SHFE aluminium 2601 contract opened at RMB 21,415 per tonne. After a slight dip below RMB 21,385 per tonne, prices quickly rebounded, hitting a high of RMB 21,430 per tonne, and finally closed at RMB 21,405 per tonne, up 0.12 per cent. In terms of fluctuation pace, night session prices did not fall below the daytime session low of RMB 21,295 per tonne, indicating strong support at that level. Meanwhile, the daytime session high of RMB 21,455 per tonne formed a short-term resistance, which the night session failed to break through, showing rangebound fluctuations. LME aluminium opened at USD 2,802.5 per tonne, reached an intraday high of USD 2,817.5 per tonne, fell to a low of USD 2,796 per tonne, and closed at USD 2,813 per tonne, up 0.18 per cent from the previous close. Trading volume was 14,800 lots, and open interest increased by 830 lots to 695,000 lots.
Macro front: The central bank announced that to maintain ample liquidity in the banking system, the People's Bank of China will conduct a RMB 1,000 billion MLF operation on November 25, 2025, with a 1-year term, using a fixed quantity, interest rate tender, and multiple price bidding method. (Bullish ★) On the evening of November 24, President Xi Jinping spoke with US President Trump by phone. Xi elaborated on China's principled stance on the Taiwan issue, emphasising that Taiwan's return to China is an important part of the post-war international order. China and the US once fought side by side against fascism and militarism, and should now jointly safeguard the outcomes of WWII victory. Trump stated that China played a significant role in the WWII victory and that the US understands the importance of the Taiwan issue to China. (Neutral) Fed Governor Waller said he advocates for an interest rate cut in December and indicated that September employment data might be revised downward.
