Aluminum prices return to weakness It is expected that short-term shock operation will occur

Overseas, the recent market rumors of a large number of Rusal ingots (100,000 tons) inflow, but no news of traders and terminal enterprises have received the source of goods, the market has not appeared a large number of Rusal ingots circulation, in the short term, the Shanghai ratio is low consolidation, the current overseas aluminum ingot imports are still losing around 2,000 yuan / ton, the import window is difficult to open
in the short term.

On the supply side, data released by China's National Bureau of Statistics showed that China's primary aluminum production hit a record high for the second straight month in April as easing power restrictions helped smelters boost production
.
In terms of cost, the spot circulation of alumina in the northern region has increased, but the cost of alumina has continued to rise, and the market game is in a state of
stalemate.

Yesterday morning Shanghai aluminum narrow range shock, the initial South China spot market holders to ship at a high price, the net premium around 10 yuan / ton, downstream buying is general, superimposed this week aluminum rod processing fees have fallen, part of the downstream transferred to aluminum rod, aluminum ingot out of the warehouse overall general, SMM Foshan aluminum price to 06 contract premium 20 yuan / ton, the average spot price recorded 20420 yuan / ton, down 20 / ton from the previous trading day, the second trading session, Shanghai aluminum rushed back down, holders flexibly mobilized price shipments, The actual transaction price of SMM Foshan aluminum price is around 30 yuan / ton - 10 yuan / ton of premium, and the absolute transaction price is concentrated in 20390-20430 yuan / ton
.

In terms of stocks, as of May 16, domestic aluminum ingot stocks were 984,000 tons, down 19,000 tons
from last Thursday.
As of May 18, LME aluminium stocks fell 0.
8475 tonnes from the previous session to 518,900 tonnes
.
With the improvement of the epidemic and the support of policies for transportation, domestic social stocks were destocked within a week, and overseas stocks fell to about 520,000 tons, at a historical low
.

Overall, this week, as the market digested news such as the explosion of the Yunnan aluminum plant, aluminum prices rebounded to around 20,500 yuan / ton and began to come under pressure
.
Shanghai aluminum failed to continue the previous upward momentum, the overall center of gravity shifted downward, lack of more positive information support
.
In the case of weak actual demand, aluminum prices have returned to weakness, and aluminum prices are expected to fluctuate in the short term
.