Aluminum high volatility fundamentals into the off-season

In terms of macro level, the Central Office and the State Office: strictly verify the legality of the source of securities investment funds and strictly control the leverage ratio; National Standing Meeting: In view of the problem of rising commodity prices, timely use of monetary policy tools such as RRR reduction to further strengthen financial support for the real economy, especially micro, small and medium-sized enterprises; Fed Meeting Minutes: Officials are expected to continue making progress
around the threshold for reducing QE.

In terms of fundamentals, demand performance was weak in the off-season, while aluminum rod processing fees were low, increasing the pressure to increase aluminum ingot inventory.
SMM inventory on the 1st reported 876,000 tons, an increase of 0.
2 from last Thursday; during the same period, the steel union statistics aluminum rod inventory was 121,500 tons, an increase of 10,500 tons from last Thursday; the export of unwrought aluminum and aluminum products in May was 439,000 tons, a slight increase of 18,000 tons from the previous month, and the export performance was stable; the import of aluminum ingots in the same period was 97,300 tons, down 58,300 tons from the previous month; Yunnan's resumption of production and new production is still slow
.

Macro Fed monetary policy has entered the stage of discussion and adjustment, and the fundamentals have entered the off-season, with a further slowdown trend, while the momentum of internal and external economic recovery has declined, and the market has entered a stage of high volatility, it is recommended to wait and see
.