Overseas production cuts may expand the trend Aluminum prices fluctuated upward

In terms of news, the European energy crisis continues to ferment, overseas aluminum plants have reduced production by more than 800,000 tons of annual capacity, and due to the greater uncertainty of overseas natural gas supply, production reduction may expand.

In terms of domestic fundamentals, the recent production capacity of electrolytic aluminum supply continued to rise, and the domestic electrolytic aluminum operating capacity may continue to increase
slightly in January.
In terms of cost and profit, the recent decline in alumina is small, electricity prices are relatively stable, aluminum prices are currently at a high level, and the industry maintains profits
.
In terms of demand, downstream inquiries are positive, but with the approach of the holiday, there are certain signs of weakness except for the aluminum plate and foil plate, and the recent decline in aluminum rod processing fees, some small aluminum rod processing enterprises may take a holiday
in advance.

In terms of inventory, the domestic aluminum ingot community continued to destock, and Wuxi and Shanghai contributed mainly to the destocking range
.
As of Jan.
10, LME stocks stood at 911,500 mt, down 05,400 mt
from the previous session.
As of January 10, domestic aluminum ingot stocks were 752,000 tons, down 24,000 tons
from the previous week.

At present, overseas production cuts coupled with domestic destocking have supported aluminum prices, and it is recommended to treat them with the idea of bargain hunting, considering that the holiday is approaching, consumption has signs of weakening, and it is not appropriate to chase more
.