Market demand has weakened, and Shanghai aluminum has maintained a narrow range of volatility

In terms of external trading, the LME fell back after rushing to $2,270 at the beginning of the March aluminum week, and the price once fell sharply to $2,188.
5 before rebounding, narrowing its decline, and closing at $2,231 at the time of writing, down $30, or 1.
33%
for the week.

In terms of the market, near the end of the month at the beginning of this week, market demand turned weak, and the willingness of the market to receive goods after the mid-week change of month was boosted, but the sales and shipments of cargo holders decreased, and trading picked up slightly but the total amount was limited
.
After the rebound of aluminum prices on Friday, the market shipments have increased, but the willingness to receive goods has declined, the holders are more priced, there is not much room for profit, the downstream generally does not receive large amounts of goods, and the overall market trading is general
.

On the macro front, the dollar is on track for its biggest monthly decline in nearly two years, with the dollar falling making dollar-denominated goods cheaper
for buyers of other currencies.
Buoyed by a weak US dollar, gold prices are on track for a third straight monthly gain, up 3% so far in January, the biggest monthly gain since August 2017
.

This week, due to the opening of the Spring Festival, the tight market capacity, coupled with the stock temperature at the beginning of the month of the market led to a slight decline in inventory, as of February 1, the total inventory of aluminum ingots in eight places was 1.
763 million tons, down 02,000 tons
from last Thursday.
In the first half of the year, the electrolytic aluminum project was put into concentrated production, and with the end of the stocking market, the demand for the year was weaker, and Shanghai aluminum will still be under pressure
.
It is expected that the aluminum market will continue to maintain a pattern of external strength and internal weakness, and in the future, with the landing of new production capacity in the first quarter, the aluminum market may face the risk
of correction.

At present, close to the Spring Festival holiday, the Shanghai aluminum market has basically entered a holiday state, investors are basically turned to wait and see, it is expected that before the Spring Festival holiday, Shanghai aluminum will continue this narrow range of volatility, due to the current situation of fundamentals, the trend may still be weak
.