Market panic rises Aluminum prices are generally weak

On the macro front, the domestic PMI plummeted in February, the index of new orders and raw material inventories fell, and the inventory index of finished products rose; The epidemic overseas continues to spread, and the plunge in U.
S.
stocks has triggered a surge in expectations of the Federal Reserve's interest rate cut in March
.

In terms of inventory, the London Metal Exchange (LME) reported 1082150 metric tons of London aluminum on February 28, down 10,125 metric tons, or 0.
93%, from the previous trading day, and fell 12.
72%
in the last 13 trading days.

In the market, in the case of a slight tightening of supply, the price of alumina on the cost side maintained a short-term upward trend; Electrolytic aluminum consumption recovered slowly, high inventory pressure is still prominent, spot aluminum prices today or slightly down
.

Foshan aluminum: Nanchu Foshan aluminum ingot quotation 13020-13080 yuan, the average price is 13050 yuan, down 110 yuan, the discount for the month is 80 yuan, the morning carrier shipments are active, the receipt is cautious, the price rebounds in the later period, the receiving goods began to be active, the market circulation tightened, and the overall trading was general
.
The mainstream transaction price is concentrated between 13020-13050 yuan, which is a premium of -30~0 yuan
compared with the average price of Foshan in the South Reserve.

Wuxi aluminum: Nanchu Wuxi aluminum ingots quoted 13020-13060 yuan, the average price was 13040 yuan, down 110 yuan, and the discount for the month was 90 yuan
.
Yangtze River: 13020-13060, 13040 down 130
.
Futures prices rebounded, traders hedged into the market, holders were mainly selling, and the overall transaction was flat
.
The spot transaction price is concentrated at 13020-13050 yuan, which is -20~10 yuan higher than the average price of Nanchu Wuxi
.

Entering March, the demand for aluminum market began to expand; At present, the social inventory of the eight major regions of aluminum in the country has increased sharply to more than 1.
38 million tons in the state of lack of consumption in the early stage, which has put great pressure on aluminum prices, but with the slow recovery of domestic demand, the aluminum market is expected to pick up and support prices
.

The new crown pneumonia is spreading around the world, the panic in the peripheral market is rising, the epidemic has caused the price of raw materials such as alumina to skyrocket, the cost of electrolytic aluminum has increased sharply, the price of aluminum has fallen below the average cost of the industry, and the supply and demand fundamentals of aluminum are seriously mismatched in the short term, and the inventory growth is still expected to be significant next week, the overall performance of aluminum prices is weak, and it is difficult to judge the bottom of the market in a panic market, and it is recommended to wait and see
.