February 29 aluminum market morning review

Affected by overnight macro trading sentiment, the main 2004 contract of Shanghai aluminum opened short positions in the morning on Friday by more than 3,600 lots, opening at 13,420 yuan / ton recorded a long black line, and then fell all the way, and there was almost no sign of rebound during the closing period, and the short price was low at the end of the day to 13,070 yuan / ton, refreshing the new low since mid-January 2017, and finally closed at 13,110 yuan / ton
.

Due to the sharp decline in the price of electrolytic aluminum and the slow recovery of alumina prices, the profit of electrolytic aluminum smelting has fallen
sharply.
At the plate price, the production of one ton of electrolytic aluminum can make a profit of about 260 yuan
.
If the profit of electrolytic aluminum production is further compressed, or even a loss, it may reduce the motivation of new production capacity, thereby alleviating the pressure of
oversupply of electrolytic aluminum.

At present, the resumption of work of domestic aluminum processing enterprises is relatively good, and the number of starts is increasing, but the actual operating rate of various enterprises is still not ideal
.
Full resumption is expected to
take several weeks.

Due to the spread of the epidemic to the world, the market trading is bearish atmosphere, Friday intraday metal fell sharply, aluminum prices in its own fundamentals are weak state is difficult to be strong, Friday fell 340 yuan / ton, down 2.
53%, is expected to maintain weak operation
in the short term.