Aluminum prices fluctuate at a high level and there is a pullback trend in the short term

In terms of domestic fundamentals, Yunnan, Shanxi and other provinces have slightly increased the production of electrolytic aluminum, and the operating capacity has continued to rise
.
In terms of cost and profit, the suspension of production in Shandong may cause the overall production of alumina to decline in February, which will form a significant support for the price of alumina, and it is necessary to pay attention to the subsequent increase in alumina prices to the disturbance of corporate profits
.

On the demand side, downstream aluminum processing enterprises near the Spring Festival have successively stopped work and holiday, and demand has weakened
.
Aluminum rods continue to be sluggish, and aluminum rod market inventories continue to accumulate.

In terms of inventory, the domestic aluminum ingot social library as a whole shows a cumulative trend, but the current accumulation range is small
.
As of January 24, domestic aluminum ingot stocks were 725,000 tons, 01,000 tons
more than last Thursday.
On January 25, LME aluminum stocks changed -14,175 tonnes to 845625 tonnes
from the previous session.

In terms of the market, spot trading before the holiday gradually weakened, spot maintained the transaction near the flat water of the month, the spot premium range narrowed by about 10 yuan / ton compared with the previous trading day, and the inventory of aluminum ingots before the holiday began to accumulate, which was delayed compared with the accumulation time in previous years, including rain and snow weather and the epidemic, and the transportation efficiency declined
slightly.

In terms of price, with the approaching Spring Festival bulls' risk aversion and the emergence of inventory inflection points, it is expected that aluminum prices will have a correction trend in the short term, and it is recommended to wait and see unilaterally
.