The aluminum market accelerates to weaken, and electrolytic aluminum consumption has rebounded slowly

Aluminum prices weakened sharply this week, and aluminum prices continued to weaken after rebounding on Monday, basically returning to Friday's low on Friday, mainly due to weak consumption, continued increase in inventory, and the continuous outbreak of overseas epidemics, risk aversion accelerated aluminum prices weakened
.
In the external market, despite the outbreak of pneumonia overseas, the domestic decline during the week was significantly higher than that of LME aluminum, and the domestic fundamental pressure was higher than that overseas
.

As of this Friday, the main 2004 contract of Shanghai aluminum closed at 13175 yuan / ton, up 65 yuan / ton from last Friday, and the LME March aluminum 15:00 on the same day was reported at 1709 US dollars / ton, up 40.
5 US dollars / ton from last Friday, and the Shanghai aluminum ratio was 7.
71 down 0.
15
from last Friday.

In terms of electrolytic aluminum production capacity, as of the end of this week, the domestic electrolytic aluminum production capacity was 37.
107 million tons, an increase of 55,000 tons from last week, and the increase mainly came from Yunnan Shenhuo and Yunaluminum Yixin are putting into production; There is news that Baotou New Hengfeng is about to resume production
.
Hydro's Albras aluminum plant in Brazil was temporarily shut down due to a power failure at a power transformer on the site, affecting a production capacity of 115,000 tons
.
The plant has a total of 4 production lines with a total capacity of 460,000 tons
.

In terms of inventory, as of Thursday, domestic aluminum ingot stocks were 1.
488 million tons, an increase of 103,000 tons over the same period last week, although consumption (outbound) has rebounded significantly, but the factory warehouse accumulated in the early stage has quickly become apparent, resulting in significant inventory growth
.
On Friday, the steel union counted 539,000 tons of domestic aluminum ingot factories, down 56,000 tons
from the same period last week.
In terms of aluminum rods, on Thursday, the steel union counted that the domestic aluminum rod inventory was 269,000 tons, a record high, an increase of 22,000 tons over the same period last week, Guangdong and East China increased significantly, and Jiangxi inventory fell significantly
.

In terms of processing fees, as of this Friday, the average price of 90-120 series aluminum rod processing fees in Foshan market was 420-390 yuan / ton, basically stable; The average price of 90-120 series aluminum rod processing fee in Wuxi market was 440-390 yuan / ton, a slight increase; Nanchang market 90-120 series aluminum rod processing fee average price of 400-390 yuan / ton, a significant increase, Nanchang market to undertake a large number of Hubei profile enterprise orders, the start of work is relatively good, the performance of destocking is significant, other areas due to the sharp decline in aluminum prices, holders are reluctant to sell, processing fees remain stable
.
In terms of aluminum rod processing fees, mainstream manufacturers stopped spot sales, resulting in confusion in market processing fees, and the factory price of aluminum rods in Shandong was 650 yuan / ton, which was relatively abnormal
.

Looking ahead to next week, focus on the development of the overseas epidemic, last week's full-scale outbreak of pneumonia caused a sharp decline in crude oil, European and American stock markets, and strong market risk aversion dragged down metal prices
.
At present, the pneumonia epidemic in the major developed economies of Europe and the United States is still in the latent outbreak period, and it is expected to enter explosive growth this week, but the financial market has reflected some expectations in advance, and it is expected that this process has not been completely completed, mainly due to the relatively high valuation of European and American stock markets, and the economic downside risk is greater
.
In addition, Russia and Saudi Arabia launched an oil war, and the plunge did not cause oil producers to jointly reduce production, but triggered a market share war, causing oil prices to plummet, dragging down commodity prices
.
Overall, it is expected that the risks in overseas markets will remain relatively high next week, which may drag down prices in the domestic market
.