The core trading range for SHFE aluminium is suggested at 21,800-22,100. LME aluminium closed at USD 2,862.5 per tonne, rebounding 0.60 per cent. Prices remained below all major moving averages, with MA5 (2,867.50) acting as short-term resistance. The MACD dual lines were below the zero axis (DIF -0.8340, DEA -0.3347), with a histogram of -0.9985, indicating the bearish pattern remained unchanged, and market trading was sluggish. The core trading range for LME aluminium is suggested at 2,840-2,900.
Macro front: Early this morning, the US Fed's FOMC announced after its meeting a 25-basis-point interest rate cut, lowering the target range for the federal funds rate to 3.50-3.75 per cent. This was the Fed's third rate cut this year, following cuts on September 17 and October 29, each by 25 basis points. (Bullish★) Data released by the National Bureau of Statistics (NBS) showed China's November CPI rose 0.7 per cent Y-o-Y, the highest since March 2024. (Bullish★)
Fundamentals: Domestically, individual new aluminium projects began powering up pots, leading to a slight increase in operating capacity and a small rise in weekly production. Overseas, new aluminium projects in Indonesia were ramping up production, with supply expected to increase M-o-M. Regarding the proportion of liquid aluminium, last week's SMM weekly proportion recorded 76.6 per cent, down 0.26 percentage points W-o-W.
