The main force of Shanghai aluminum ushered in a good start, and the trend was strong in the short term

On the supply side, the preliminary value of China's primary aluminum production in January 2022 was 3.
2597 million tons, down 2.
32% year-on-year and up 1.
63% month-on-month; The alleviation of power shortage and the high operation of aluminum prices have increased the enthusiasm of electrolytic aluminum enterprises to resume production; China's average daily output of primary aluminum in January was 105,150 tons, climbing
for two consecutive months.

On the demand side, some large-scale aluminum processing enterprises are relatively saturated with orders, and production is still full during the Spring Festival, and although the Winter Olympics have led to some processing enterprises in the north to limit production, short-term curbed consumption will rebound
after the end of production restrictions.

In terms of inventory, during the Spring Festival, the social inventory of electrolytic aluminum increased by 158,000 tons to 912,000 tons, down 2.
36% year-on-year, and the increase was less than expected
.

In terms of cost, the epidemic in Baise area of Guangxi recently occurred, and surrounding alumina enterprises actively responded to the national epidemic prevention and control policy to close the factory area, the price of alumina increased its upward momentum, and the cost support of electrolytic aluminum was further strengthened
.
Aluminum prices will continue to fluctuate strongly in the short term, but it is necessary to pay close attention to the progress of electrolytic aluminum production and the recovery of consumption in peak season
.