Aluminum market consumption is less than expected, and the trend of Shanghai aluminum is weak

Yesterday's aluminum prices came under pressure to the downside, mainly because many downstream aluminum processing enterprises were forced to stop production due to the impact of the epidemic, and domestic aluminum consumption was less than expected
.

Domestically, the operating capacity of electrolytic aluminum has increased slightly, and it is expected that the domestic electrolytic aluminum operating capacity will reach more than 40 million tons in April, and the output will be released
in the future.

In terms of inventory, on April 6, the domestic aluminum ingot inventory was 1.
054 million tons, 13,000 tons
more than before the holiday.
LME aluminium inventories fell 100 tonnes from the previous session to 619,800 tonnes
on April 7.
Social library data shows that inventory has accumulated slightly, a large number of aluminum ingots are not stored in time, and the reduction in logistics efficiency directly leads to the weakening of aluminum ingots and aluminum rods, and it is expected that short-term logistics will still be difficult to alleviate
.

In terms of price, it is necessary to continue to pay attention to the progress of domestic electrolytic aluminum production and the recovery of downstream demand, the recent development of the epidemic has caused certain interference to transportation and procurement, the mismatch between domestic aluminum supply and demand continues, and it is recommended to treat it with a wait-and-see approach in the short term, but considering that the inventory at home and abroad is at a low level, coupled with the downstream cumulative orders and the postponement of the consumption season, there is still some support
below the aluminum price.