Strong terminal demand for aluminum received some support

Macro: The US vaccine was approved and began to be administered this week, but the cumulative number of new crown deaths has exceeded 300,000, and London, the United Kingdom may open the highest alert level of the epidemic, and the market sentiment has fallen
in recent days due to concerns about the continued spread of the epidemic.
At 3:00 a.
m.
Beijing time on Thursday (December 17), the US Federal Open Market Committee (FOMC) announced its latest interest rate decision, keeping the benchmark interest rate unchanged in the range of 0%-0.
25%, the excess reserve ratio (IOER) unchanged at 0.
1%, and the discount rate unchanged at 0.
25%, in line with the market's general expectations
.

On the supply side: China's average daily production of primary aluminum in November reached a record high
.
According to data from the Bureau of Statistics, China's primary aluminum production in November increased from a year earlier, with average daily production hitting a record high, and more smelting capacity came online
amid strong demand and high aluminum prices.
Demand side: Domestic terminal demand for automobiles, photovoltaics and household appliances is strong
.

Stocks: LME stocks fell by 5,925 tonnes to 1,371,300 tonnes yesterday, compared with a slight accumulation of 288 tonnes to 214,600 tonnes last week, and warehouse receipts down 2,597 tonnes to 76,046 tonnes
.
According to the data on December 17, compared with the statistics on December 14, the destocking was 06,000 tons, which was 598,000 tons
.
Overall, the domestic electrolytic aluminum social inventory is still at a low level, which still supports the price
.

Overall, in terms of raw materials, alumina prices still maintain a low level of about 2300 yuan, the current electrolytic aluminum industry profits rose slightly, from a historical perspective production profits are still in a high position, and high profits have lasted for a long time
.
On the demand side, China's downstream automotive and infrastructure data performed strongly in November, indicating that China's economy maintained its recovery momentum and domestic market demand performed better
.

In the future, the supply side with the acceleration of aluminum enterprise investment and production, the supply side capacity is further released, while the downstream start remains stable, the new production capacity in December further released to form a certain suppression of electrolytic aluminum prices, limiting the upward momentum of aluminum prices, but China's low social inventory still supports aluminum prices
to a certain extent.