Consumption is expected to recover and improve, and aluminum prices fluctuated slightly

Overseas, Federal Reserve Chairman Jerome Powell said he would continue to raise interest rates until inflation declined
.
The Indonesian government said it would ban bauxite and tin exports this year to support downstream mining construction
.
The domestic supply side has basically maintained stable operation, and the new production capacity of electrolytic aluminum has slowed down compared with before, mainly because Heqing Yixin has a slight reduction in production and the production capacity to be resumed has slowed down
due to the damage of the electrolyzer.
An aluminum plant in Yunnan stopped production due to an accident, involving 370,000 tons of operating capacity, which had limited
impact on the overall supply after maintenance.

In terms of consumption, the epidemic situation in some consumption places has improved, but the recurrence of the epidemic still makes some processing places reduce production and stop production
.

In terms of stocks, as of May 19, domestic aluminum ingot stocks were 965,000 tons, down 38,000 tons
from the previous week.
LME aluminium stocks fell 28,000 tonnes from last week to 504,200 tonnes
.
With the improvement of the epidemic and the support of policies for transportation, domestic social stocks continued to destock during the week, and overseas stocks continued to decline to less than
510,000 tons.

Overall, the new resumption of production on the domestic supply side is still proceeding steadily, and the restraining effect of the epidemic on downstream consumption still exists, but the Shanghai epidemic unblocking policy is clear, the operating rate of downstream processing enterprises has increased, and consumption is expected to recover in
the later period.

In terms of price, considering that the production capacity reduction on the supply side accounts for a relatively small proportion, and Guangxi, Gansu, Yunnan and other production capacity continue to be released since June, the overall supply pressure is not reduced, it is necessary to pay attention to the degree of improvement of the epidemic and the recovery of consumption in terminal sectors such as real estate with policy support in the later stage, and it is recommended to treat it with a wait-and-see approach in the short term
.