Shanghai aluminum narrow range oscillation short-term showing an adjustment trend

In terms of the industry, at present, relevant enterprises can already apply to the local environmental protection solid management center for approval, and can obtain the import scrap aluminum license
from the Ministry of Ecology and Environment on July 1.
According to reliable information from SMM, the number of approvals issued will be limited, and the import volume of scrap aluminum in the second half of the year will continue to decrease year-on-year, and some enterprises have obtained import qualifications, but the import volume is still not determined
.

In terms of the market, aluminum futures moved up at the opening before noon of the month
.
Shanghai spot trading price is between 14070~14080 yuan / ton, basically the same as the previous day's trading price, the current month's plate premium 20~30 yuan / ton, Wuxi spot transaction price between 14070~14080 yuan / ton, Hangzhou transaction price between 14080~14100 yuan / ton
.
A large household maintained a purchasing rhythm during the day, and traders shipped actively, because the aluminum price fell below the 10,000 mark in the evening, although it rose in the morning, but the confidence of the holders was insufficient, and there were more intraday shipments than
receivers.
The downstream is still dominated by on-demand procurement, and the wait-and-see mood has not subsided
.

In terms of inventories, LME aluminum stocks were 1,275,200 tons on May 08, an increase of 11,800 tons from the previous session; As of April 30, 2019, electrolytic aluminum stocks on the Shanghai Futures Exchange were 621,907 tons, down 16,123 tons
from the previous week.
From a seasonal perspective, current inventories remain at an average
level compared to the last five years.

The main 1906 contract of Shanghai aluminum fluctuated in a narrow range during the day, and the overall market performance was more cautious
.
In the spot market, traders shipped positively, because the aluminum price fell below the 10,000 mark in the evening, although it rose in the morning, but the confidence of holders was insufficient, and there were more intraday shipments than
receivers.
The downstream is still dominated by on-demand procurement, and the wait-and-see mood has not subsided
.
Technically, the Shanghai aluminum 1906 contract shows an adjustment trend around 14,000 yuan / ton, and is expected to maintain volatility
in the short term.