April 18 aluminum brief review

In terms of news, the website of the Xinjiang Changji government announced over the weekend that the construction of 2 million illegal electrolytic aluminum production capacity in the autonomous region was stopped, and the supply-side reform of electrolytic aluminum is expected to be further strengthened, and the online "Clean up and rectify the illegal project action plan of the electrolytic aluminum industry" will be severely dealt with after May 2013, but there are still replacement indicators and other ways to coordinate, illegal production capacity is still in production, the actual impact is in the second half of the year, so aluminum prices fall.

In terms of the market, the holders of goods shipped to maintain stability, some traders were bullish on the future market, appropriate replenishment, returned from the weekend, the situation changed, downstream enterprises were caught off guard, it was difficult to accept such a high price, coupled with today's last trading day, the downstream chose to wait and see, the overall transaction showed wait-and-see suppressed
.
Spot inventories have retreated, but futures warehouse receipts continue to increase
substantially.
SMM statistics show that the total inventory of electrolytic aluminum in the five places in China is 1.
218 million tons, down 04,000 tons
from last Thursday.
On April 17, the aluminum in the previous period increased by 19,694 tons to 320,920 tons
.

Overall, production is still undiminished, inventories are high, but supply-side contraction is about to come out, and the overall aluminum price is strong
.
However, it should be noted that the current aluminum price rises and the cost side falls, and the profit rises rapidly, coupled with the current supply pressure will still put pressure on domestic prices, it is not advisable to be too optimistic about short-term aluminum prices, it is recommended to hold more than wait and see or gradually layout long orders on the dip
.