Aluminum prices are weak and volatile, and short-term price momentum is insufficient

In terms of the market, today's spot trading price of Yangtze River is 12440-12480 yuan / ton, down 20 yuan; Guangdong South Reserve reported 12660-12720 yuan / ton, up 110 yuan; Hua reported 12550-12570 yuan / ton, down 30 yuan
.
Holders are more active in shipments, downstream shows signs of stocking, buying goods is more active, and the overall transaction is better
.

Industry News:

1.
Alcoa Corp Later, it said that due to the impact of the new coronavirus pneumonia epidemic, the company has suspended the release of quarterly supply and demand outlooks
for aluminum, alumina and bauxite.
The company did not say when it would be able to resume publishing estimates
.
Alcoa reported first-quarter revenue of $80 million, compared with a net loss of $199 million
in the same period last year.
The company said
.
At present, all bauxite, alumina refineries and aluminium smelters are in operation
.

2.
In order to strengthen the development and utilization of resources and protect the work and effectively maintain the order of mineral resources development, a few days ago, Yanshan County of Wenshan Prefecture carried out a special rectification action of "cracking down on illegal mining of mineral resources and illegal operation of mineral products", and the special rectification operation carried out in Pingyuan District detected a total of 13 suspected illegal mineral product dumping points, and seized about
89,000 tons of bauxite according to law.
At present, Wenshan bauxite has a controlled reserve of 150 million tons, a developable reserve of 110 million tons, and a long-term reserve of more than 200 million tons, ranking first in Yunnan Province, with an aluminum-silicon ratio between
4-8.
The production capacity of alumina is 2 million tons, and the production capacity of electrolytic aluminum is about 3 million tons, and the deployment of the province's hydropower and aluminum integration industrial base is gradually planned
.

3.
According to the monthly report released by the World Bureau of Metal Statistics, after calculation, the global primary aluminum market was oversupplied by 684,000 tons in January-February 2020, and 492,000 tons in 2019; global primary aluminum demand in January-February was 10.
4 million tons, an increase of 411,000 tons over the same period in 2019; and global primary aluminum production in January-February increased by 8%
over the same period of the previous year.
Given the increased supply of bauxite and alumina, China's production is expected to be 6.
062 million tonnes, which currently accounts for about 55% of the world's total production; In February, primary aluminum production was 5.
5392 million tons, and consumption was 5.
1436 million tons
.

At present, downstream consumption may be prepaid, and the reduction of supply is still small, the fundamentals of electrolytic aluminum are weak for a long time and difficult to change, and the short-term price upward momentum is insufficient, but the pullback in the peak season may not be deep, and the price may show a wide range of shocks, and sellers seize the opportunity
to enter the market.