Market risk appetite improves The fundamentals of the aluminum market show signs of weakening

On Tuesday, Shanghai aluminum fluctuated at a high level, and Lun aluminum strengthened
sharply.
Recently, global economic data has continued to improve, market optimism and abundant liquidity have supported strong commodity prices, but the risk of a second outbreak of overseas epidemics is difficult to eliminate
.

Non-ferrous metal production in June was released, and data showed that the output of electrolytic aluminum in June was 3.
004 million tons, an increase of 2.
42%
year-on-year.
It is expected that with the orderly resumption of electrolytic aluminum production capacity, electrolytic aluminum production will rise
again in July.
On the demand side, domestic terminal demand continued to rise, automobiles and home appliances continued to grow up stimulated by policies, and home appliance production and sales data continued to climb in June
.
From the perspective of Sino-US economic data, the data sub-item is stable and good, and the market optimism continues to rise
.

In terms of inventory, the domestic electrolytic aluminum social stock is currently 715,000 tons, and low inventory provides support
for aluminum prices.
At the beginning of the week, the inventory of aluminum ingots continued to decline by 10,000 tons, the outbound volume fell, and the aluminum rod processing fee was reduced
.
The inventory inflection point is approaching, and the fundamentals show signs
of weakening.
However, driven by macro expectations and funds, the aluminum ingot spot market remains strong, and Shanghai aluminum is expected to fluctuate
at a high level in the short term under low inventory.
In general, the recent increase in market risk appetite, the overall upward trend of large types of assets, Shanghai aluminum is recommended to continue to hold
in the early stage.