Aluminum prices are strongly volatile and it is recommended to treat it with a wait-and-see approach

On the macro front, the executive meeting of the State Council stated that monetary tools
such as RRR cuts should be used in a timely manner.
Overseas, the United States recently announced additional tariffs
of 10.
5%-11% on all U.
S.
primary aluminum imports from Russia.
In terms of domestic supply, driven by high profits and abundant hydropower resources, domestic electrolytic aluminum operating capacity continues to rise, and Yunnan, Shanxi, Guangxi, Qinghai and other places have increased production capacity release, which puts certain pressure
on aluminum prices.

On the demand side, the number of infected cases in Shanghai and other places is still rising, and the current epidemic is still running at a high level and the scope has expanded, resulting in a phased recovery of the social inventory of aluminum ingots
.
Recently, the weekly operating rate of aluminum downstream leading processing enterprises increased by 1.
2% month-on-month to 67.
8%, of which the operating rate of aluminum profile enterprises that stopped production due to the epidemic in the early stage has rebounded, mainly due to the excellent performance of the terminal photovoltaic and electronics sectors, but the downstream transportation and terminal orders affected by the epidemic are still poor
.

In terms of inventory, on April 11, domestic aluminum ingot stocks were 1.
061 million tons, 05,000 tons
more than last Thursday.
On April 14, LME aluminum stocks fell by 4,275 tons from the previous session to 608,000 tons
.

In terms of price, in the short term, the pattern of strong outside the aluminum market and weak inside the market continues, it is recommended to treat it with a wait-and-see approach, and it is necessary to pay attention to the development inflection point of the epidemic and the enthusiasm of spot purchases after the correction of aluminum prices
.