January 16 aluminum market brief comment

On Wednesday, the main 2003 contract of Shanghai aluminum opened at 13955 yuan / ton
in the morning.
After the opening, the short entry suppressed the price of aluminum, and the low of the first trading session before the afternoon of Shanghai aluminum once touched 13915 yuan / ton
.
After the low led to the entry of bulls, Shanghai aluminum quickly rebounded to repair the decline, short short saw the situation and took profit in time, Shanghai aluminum crossed the 20-day moving average and continued to rise
.
The late high touched 13990 yuan / ton near the 5-day moving average, closing at 13970 yuan / ton
.

The biggest change in fundamentals this week comes from the weakening of demand downstream due to the Spring Festival holiday, in addition, electrolytic aluminum companies have increased the proportion of ingots due to the decrease in aluminum water consumption, resulting in the accumulation of aluminum ingots
.
At the same time, affected by the Spring Festival, the number of aluminum ingots in transit has increased, which has also slowed down the accumulation speed
to a certain extent.
If the growth rate of aluminum ingot inventories increases within the expected period, aluminum prices will remain volatile.

Domestic social electrolytic aluminum stocks, Shanghai area 109,000 tons, Wuxi area 192,000 tons, Hangzhou area 53,000 tons, Gongyi area 49,000 tons, South China Sea area 129,000 tons, Tianjin 57,000 tons, Linyi 07,000 tons, Chongqing 14,000 tons, consumption area aluminum ingot inventory total 610,000 tons, unchanged from last week
.
As inventory levels remain low, the rate of accumulation remains slow as the holiday approaches, and the continuous retreat of time is not conducive to bears
.
Short-term aluminum prices are limited, and the main force of Shanghai aluminum temporarily receives support at the 14,000 mark, and continues to pay attention to the range of 1.
4-14,200
.