Aluminum prices stop falling and rebound, short-term or performance shock recovery trend

Recently, some aluminum plants in Henan plan to reduce production by 10-15% due to poor corporate profitability and other reasons, which is expected to affect the annualized production capacity of about 110,000 tons, and will reduce production in place in mid-November, and the resumption time is to be determined
.

In terms of demand, downstream demand is currently weak, the operating rate of downstream processing plants in Henan is reduced due to the quiet impact of the epidemic, and some downstream feedback in East China is about to enter the traditional off-season, and demand is more pessimistic
.
Recently, the epidemic situation in many places has been repeated, and traffic control is strict, so it is necessary to pay attention to the impact
of the epidemic on the transportation and production of aluminum processing enterprises.

Overseas markets have recently returned to a stable period, and the negative impact is expected to be limited before the interest rate hike is implemented; The latest domestic data shows that the social treasury fell by 16,000 tons from last week, but this round of warehouse reduction is not caused by the recovery of consumption, but mostly due to the sudden outbreak of the epidemic in Henan and Zhejiang, resulting in difficulties in arrival; Therefore, the inventory end is actually limited in price promotion benefits, aluminum prices more recovery is due to the technical over-fall rebound and the strong support of the cost side, it is expected that Shanghai aluminum is expected to return to 18,000 fluctuations in the near future, short-term or performance shock recovery trend, but it is not recommended to chase too high, downstream intraday bargain stocking, stocked customers can wait and see
.