June 16 Shanghai aluminum brief comment

Shanghai ushered in a full resumption of work, and the problem of poor transportation in the early stage was basically lifted, but the boost to terminal demand was insufficient, and the downstream operating rate showed a weak recovery, and the overall level was much lower than that of the same period
.
The current pressure between weak reality and strong expectations still needs time to be gradually buffered, and pent-up demand may usher in a high explosion
.
The preliminary investigation results of the vicious incident of repeated pledge of warehouse receipts that have attracted much market attention are that financiers have bought through multiple delivery warehouses, and the impact of capital hedging and spot selling risks is still fermenting
.
In summary, it is expected that the aluminum ingot social library will continue to destocking in June, and there will be certain pressure
on supply.
Aluminum prices will fluctuate around 20,000 and continue to pay attention to domestic spot inventory
.

In the early morning, the Fed interest rate meeting results landed, although the interest rate hike of 75 basis points, the largest increase in 28 years, but Powell raised interest rates and was abnormal, dovish remarks made the metal plate rebound at a low level, Shanghai aluminum shock preference, and the early bearish news is basically digested over, it is expected that in the short term will still shock preferences, or in the 19850-20300 range oscillation, the current resumption of work and production of the promotion, but market confidence has not fully recovered, terminal demand is not enough to boost the force, spot continuous upward pressure is also large, It is recommended that downstream demand manufacturers mainly stock up on demand at low prices
.