Guoxin Futures: Breaking! Trump plans to cut steel and aluminum tariffs, aluminum prices drop accordingly. Recommend clearing positions for the holiday.

On Friday, Shanghai aluminum fluctuated downward, with the main contracts reducing positions by over 10,000 lots. In the spot market, according to SMM data, the average price of A00 aluminum ingots on February 13 was 23,160 yuan/ton, down 190 yuan/ton from the previous day. The market atmosphere was heavily influenced by the holiday, with just-in-time stockpiling for demand. Today, a sudden news broke that Trump plans to reduce steel and aluminum tariffs. Following this news, LME aluminum prices plummeted during trading, and Shanghai aluminum also opened lower in the afternoon, with the decline expanding to over 2%. If the tariff reduction is implemented, it will directly lower the costs of importing related resources and products into the US. Previously, premiums caused by tariffs and tariff expectations on metals like aluminum may be significantly squeezed out. China will enter the Spring Festival holiday, halting trading. In the short term, tariff easing is a negative factor for overseas aluminum premiums and market sentiment. For aluminum, investors are advised to close positions before the holiday and closely monitor policy developments. (Guoxin Futures)