Commodities are generally rising, and aluminum prices need to be cautious when chasing higher

Abroad, the Nord Stream 2 gas pipeline company is considering filing for bankruptcy, and will make a decision before the deadline for US sanctions and announce that it will further exacerbate market concerns
about natural gas supplies.
As of 5:00pm local time on March 2, the price of TTF natural gas in the Netherlands has risen to more than 170EUR/WMh, an increase of more than 40%.

With the rapid rise in energy prices such as natural gas and crude oil, the price of multi-country trading electricity in Europe has also soared to more than
$300/WMh.

Domestically, the resumption of production on the supply side is proceeding slowly, and as of February, 1.
22 million tons of electrolytic aluminum production capacity has resumed production in China
.
The green aluminum project in operation in Yunnan is expected to reach 4.
3 million tons by the end of March, and the capacity utilization rate is expected to return to 80%.

On the demand side, high aluminum prices inhibit demand outside demand, but the overall demand remains strong and tough, the weekly opening rate of leading processing enterprises is acceptable, the accumulation range of aluminum ingot social library has slowed down, and aluminum rod inventory has also shown an inflection point, and it is expected that there will be an inventory inflection point
after entering March.

In summary, the short-term focus is still on the trend of geopolitical issues, the long-term aluminum price is driven by the recovery of domestic demand, the current policy support, for March demand optimistic, but due to the current aluminum price volatility, chasing higher needs to be cautious
.