April 19 Shanghai aluminum morning review

In terms of news, there are market rumors that the four ministries and commissions led by the National Development and Reform Commission have issued a notice that special actions
will be carried out to clean up and rectify illegal projects in the electrolytic aluminum industry.
The scope of the special operation is newly built after May 2013 for illegal projects, as well as projects
that have not implemented the above-mentioned 2015 notice handling opinions.
The construction of these projects under construction should be stopped immediately, and the completed
ones should be stopped immediately.
If the rumors are true, it will have a greater impact on the supply side and even cause a tight
supply.
However, the current commodity is in a downtrend, aluminum prices are dragged down by the overall weak, industry news is difficult to match the overall bear market background of commodities, it is expected that aluminum prices are still dominated by a pullback
.

In terms of spot, the high level of aluminum futures fell behind, holders of divergent views on the market, some traders sold at a high price, difficult to trade, some traders adjusted prices with the market, the transaction price moved down to 14230-14260 yuan / ton, after the change of month, the aluminum discount did not see a significant expansion, traders were willing to receive goods, downstream wait-and-see sentiment was still strong, and the overall transaction price was suppressed
.
On the whole, de-capacity is expected to boost aluminum prices, but the increase in electrolytic aluminum production and high inventories have put pressure on aluminum prices, and it is expected that the main force of Shanghai aluminum will fluctuate weakly
at the high level within the day.