Fundamentals are intertwined with long and short aluminum prices

An aluminum plant in Yunnan, which was suspended due to an accident last Thursday night, began to resume production with electricity yesterday, suppressing market expectations
for tighter supply.
According to statistics, China imported 86,300 tons of scrap aluminum in October, a year-on-year increase of 82.
4%, and a cumulative import of 725,700 tons from January to October, an increase of 6.
8%
year-on-year.

Fundamentally, the domestic supply side is still tight, due to the impact of the environmental protection tasks and the dual-control policy of energy consumption in the Winter Olympics, electrolytic aluminum production capacity is at risk
of compression again.
Consumers on the consumer side of the goods to the price of shipments, receivers bargain purchase, the overall trading atmosphere is general, due to the large range of aluminum price pullback, downstream replenishment willingness to rise, downstream processing enterprises operating rate overall stable, recently there is news that real estate control policies are expected to be relaxed, the consumer side has continued to repair
slowly in the near future.

In terms of inventory, according to the latest inventory data, the domestic aluminum ingot social warehouse went to the warehouse slightly, of which the South China Sea and Gongyi areas are still out of storage, but it remains to be seen
whether the destocking can continue.

In terms of price, the recent fundamentals are intertwined, it is necessary to observe the sustainability of aluminum ingot destocking, and the recent market is in a highly sensitive period, with large fluctuations, unilaterally recommended to be cautious and wait-and-see
.