Shanghai aluminum is under pressure to maintain a weak shock pattern

On the macro front, the US dollar index last week fluctuated throughout the week, weakening slightly, and the obvious weakening of the market's expectations for interest rate hikes put pressure on the US dollar above, but it is still in the process of raising interest rates, and there is still support below the US dollar; The State Council held a national video and telephone conference on stabilizing the overall economic market, and the meeting went directly to the county level, which shows the strong determination to stabilize growth, but pessimism is still entrenched in the macro level
.

In terms of spot, the trading in Wuxi market turned weak, and the demand side purchased on demand; The downstream operating rate of Gongyi market has rebounded, and the market transaction is active; Foshan market just needs to be purchased, and the overall market demand is general
.

On the supply side, Yunnan Power Grid issued a notice, deciding that from now until the end of the flood season, under the premise that the replacement of production capacity indicators is in place, the power load of electrolytic aluminum enterprises limited in the early stage of production in Dali and Wenshan areas will be fully liberalized, and the Yunnan aluminum Yixin, Yunnan Qiya, Yunnan Hongtai and other projects mentioned in the document will accelerate the speed
of production in the near future.

In terms of inventory, as of May 26, according to Mysteel statistics, China's electrolytic aluminum social inventory was 968,000 tons, down 12,000 tons
from this Monday (May 23).
In terms of import and export, data from the General Administration of Customs shows that from January to April 2022, the cumulative volume of domestic primary aluminum imports was 131,400 tons, a year-on-year decrease of 357,500 tons, a decrease of 73.
12%; Domestic electrolytic aluminum enterprises put into production and resumed production progress accelerated, European electrolytic aluminum enterprises to resume production still need time, while export profits are still in the historical high range, short-term overseas aluminum demand continued improvement will still drive domestic exports
.
Overseas, LME inventories fell to around 470,000 tons, at a historic low, and it is worth noting that the LME cancellation/registered warehouse receipt ratio soared, updating a record high
.

In general, the supply side continues to increase volume, continue to put pressure on aluminum prices, the full resumption of domestic work and demand improvement has not yet been fully realized, demand recovery is still relatively slow, the impact of the epidemic on consumption still exists, aluminum prices are under pressure above, maintaining a weak shock pattern
.