SHFE aluminium price drops on China reserves sell-off news but market optimistic for H2

Chinese aluminium market sentiment dipped in the morning of Wednesday June 16 after the National Food & Strategic Reserves Administration announced moves to calm the overheated commodity market, yet optimism remains for aluminium's price performance in the second half of 2021.

China announced on Wednesday it will release its national base metals reserves in the near term to stabilize commodity prices. The announcement also said to it would sell its reserves to end users through tenders.
The aluminium front-month price on the Shanghai Futures Exchange declined to 18,590 yuan ($2,904) per tonne on Wednesday, down by 510 yuan from the previous day's closing price at 19,100 yuan per tonne.
But market participants largely downplayed the impact of the release of aluminium reserves on prices in the medium term.

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