April 27 Shanghai aluminum afternoon comment

The 2006 contract of Shanghai aluminum main company opened at 12085 yuan / ton
in the morning.
At the beginning of the session, the bears increased their positions slightly, and the market reached the lowest level of the day of 12045 yuan / ton, and then the bulls continued to increase their positions, pushing the market up to 12245 yuan / ton, and fell slightly at the end of the session, and finally closed at 12195 yuan / ton, up 90 yuan / ton, or 0.
74%,
from the previous close.

The price of Chinalco East China AOO aluminum ingots was 12470 yuan / ton, down 30 yuan
.
Downstream start recovery, as well as aluminum plant sales to boost inventory destocking, the recent rapid destocking of domestic electrolytic aluminum social inventory, in addition to primary aluminum to scrap aluminum consumption substitution is also providing support, spot aluminum prices are expected to rise
slightly today.

Near-term supply and demand both ends are good, but the low operation of alumina prices gives smelters profit margins, because the impact of the overseas epidemic has not slowed down, weak demand expectations still linger over the market, short-term this strong destocking with the decline in overseas orders is difficult to sustain, then in the case of profit improvement, smelters are willing to reduce production decline and there are new investment expectations in the second quarter, supply and demand or return to the surplus situation, but the recent Yunnan provincial government supports commercial storage and storage, need to pay attention to the specific storage of supply and demand regulation, Aluminum prices remain cautious and bearish
.