Shanghai aluminum afternoon comment on December 17

The price of Chinalco East China AOO aluminum ingots was 16,640 yuan / ton, down 10 yuan
.
Aluminum ingot social inventory maintained a low level, Monday again to the warehouse, there has not been an inflection point, downstream demand performance is better, the recent power cuts in many places have a limited impact on aluminum processing enterprises, electrolytic aluminum production capacity is not as expected, it is expected that spot aluminum prices will rise
today.

A new round of fiscal stimulus in the United States may land in the near future, coupled with the Fed interest rate meeting said that it will increase bond purchases according to the situation, the stance of monetary easing in the United States remains unchanged, which is still positive
for commodities.
In terms of industry, the social inventory of electrolytic aluminum continued to decline on Monday, and the current inventory was only 589,000 tons
.
The strong demand side has not been falsified, and the aluminum price support is obvious
under the low inventory level.
Construction aluminum and automotive aluminum have improved significantly, the downstream aluminum operating rate is still high, and the terminal demand for electrolytic aluminum is difficult to deteriorate
in the short term.
Recently, the import profit space has opened, electrolytic aluminum imports may increase in late December, and the inventory inflection point is expected to be next year
.
Overall, the fundamental drive is still upward, and Shanghai aluminum is recommended to continue to hold
.