Market long-short game Aluminum prices fluctuate sharply

Last week, the overall market of Lun aluminum continued to be weak, and the intraday aluminum price once fell to 3221, and there was a slight recovery at the end of the day, and as of Friday, the cumulative decline reached 2.
16%.

During the week, the Federal Reserve and the European Central Bank continued to release "interest rate hike" signals, the Fed preferred to raise interest rates by 50 basis points in May, and the external aluminum price also fell under the expectation of tightening policy; However, the current overseas sanctions in Europe, the United States and Russia are still intensifying, and the overseas inventory of non-ferrous metals continues to decline, of which the shortage of aluminum supply has been gradually digested in the early stage, but with the continuous decline of inventory, the future market may still support the price
.

In the spot market, the market is unstable, downstream enterprises are more cautious in receiving goods, the enthusiasm of middlemen to enter the market is acceptable, and the East China market is affected by the epidemic, and the transaction is weak
.

East China: The Fed once again released a signal, the BOC meeting indicated that it is necessary to gradually implement the national RRR reduction and interest rate reduction measures, and under the influence of the epidemic, the market sentiment is unstable, long and short game, last week aluminum prices fluctuated more sharply, the overall performance first fell and then rose, as of Friday, East China spot aluminum prices between 21710-21750 yuan / ton, down 70 yuan / ton, spot discount 60 yuan / ton
.

South China: As of Friday, the price of Foshan Nanhai aluminum ingot ticket is between 22070-22170 yuan / ton, up 30 yuan / ton from the previous month, compared with East China, the current price difference between the two places is about 390 yuan, the difference has widened; In terms of market transactions, except for a few cities in South China that have been affected by the demand of the epidemic, most of the transactions in other markets have been normal, the market is unstable, and downstream enterprises just need to stock up
.

In general, aluminum prices have gradually opened up an upward pattern during the week, and the main reason for this is that on the one hand, the state has come forward to control transportation in many places, accelerating the smooth logistics of real enterprises, and alleviating the contradiction between supply and demand driven by the current epidemic to a certain extent; On the other hand, the recent National Council proposed to reduce the RRR and interest rates, which undoubtedly boosted the willingness of small and medium-sized enterprises to resume work and production, and also promoted the recovery
of market sentiment.

With the support of a number of domestic measures, aluminum prices ushered in a bottoming and recovery trend, and it is expected that spot aluminum as a whole may still maintain a high level of shock operation, but it is worth noting that the bearish effect on the market before the epidemic has not completely dissipated cannot be ignored, and there is still the possibility
of shock adjustment during the session.