Fed monetary tightening increases the price of aluminum in the external market

Lun aluminum closed at 2926 US dollars / ton on May 3, down 2.
89%, and made up for some of the losses on the 4th, but the overall downward trend was maintained, mainly due to the market's pessimistic expectations
for demand.

In terms of market, the premium of Gongyi area relative to Wuxi before the holiday rose to more than
250 yuan / ton.
In recent weeks, the Gongyi area has continuously destocked, with less supply and positive trading
.
After the sharp decline in the base price of aluminum, it stabilized, and the aluminum rod processing fee in Foshan was concentrated at a relatively high level
of 750-850.
Since mid-April, demand has picked up
in South and Central China.

On the supply side, thanks to the significant improvement in power supply, Yunnan Shenhuo's production capacity of 900,000 tons was put into operation
at the end of April.
The resumption of electrolytic aluminum production capacity continued to accelerate, and by the end of April, SMM statistics showed that the operating capacity of electrolytic aluminum had exceeded 40 million tons to 40.
19 million tons
.
It is expected to rise to 40.
45 million mt
in May.

In terms of inventory, during the long holiday, the London metal market generally closed down, with London aluminum down 0.
93% from before the holiday, once touching a relative low of $2891.
5 / ton
.
Danlen aluminum stocks fell steadily to 574,000 tons
.
The fundamentals of the overseas aluminum market remained stable
under low inventories.

Judging from the epidemic situation, the production situation of most of the major electrolytic aluminum production provinces is normal, but the lack of transportation capacity has led to a decrease
in the shipment volume from Xinjiang to the place of consumption.
At present, the impact of the epidemic in East and North China has not receded, resulting in the peak season may be further postponed
.