The fundamentals are relatively stable, and the pressure on Shanghai aluminum is obvious

On the macro front, the US PPI rose more than expected in November, with a year-on-year increase of a record
high.
Final demand PPI rose 0.
8 percent month-on-month and 9.
6 percent year-on-year in November, the largest annual increase since the data began in 2010
, according to the U.
S.
Department of Labor.
Core PPI rose 0.
7% in November, a record 7.
7%
year-on-year.

According to the National Bureau of Statistics, China's output of ten non-ferrous metals in November 2021 was 5.
35 million tons, down 0.
7%
year-on-year.
Among them: the output of primary aluminum (electrolytic aluminum) in November was 3.
1 million tons, down 1.
8%
year-on-year.

Fundamentally, some electrolytic aluminum plants have begun to prepare for the resumption of production, but the progress of resumption of production tends to be slow, while the latest data show that electrolytic aluminum inventories continue to decline, LME aluminum inventories are at a low level, and the trend of coal is moderated, forming a strong support
for aluminum prices.
In addition, pessimistic expectations for domestic real estate were revised, and infrastructure expectations boosted demand
.
However, near the Fed interest rate meeting, the market sentiment is cautious, and Shanghai aluminum is under obvious pressure
.

In terms of stocks, LME stocks stood at 990,500 mt as of Dec.
15, up 13,000 mt
from the previous session.
As of Dec.
13, social stocks of aluminum ingots fell by 37,000 tons from last Thursday to 915,000 tons
.

In terms of news, according to the relevant provisions of the Regulations of the People's Republic of China on Import and Export Tariffs, the import and export tariff rates of aluminum-related products in 2022 will remain unchanged
.
According to statistics, China's electrolytic aluminum production in November 2021 decreased by 1.
8% year-on-year to 3.
1 million tons, and electrolytic aluminum production from January to November 2021 increased by 5.
7% year-on-year to 35.
45 million tons
.

At present, the fundamentals of the aluminum market are relatively stable, and the aluminum ingot social library continues to support aluminum prices, but there are many macro uncertainties, and the operation is mainly
wait-and-see for the time being.