The space for aluminum prices to continue to rise remains to be verified

In terms of news, the recent surge in European energy prices has caused certain disturbances to the negotiation of energy supply contracts for overseas aluminum plants at the end of the year, and this disturbance has also affected
the production of aluminum plants.
Alcoa recently announced plans to close its San Ciprian smelter in Spain in January 2022 and plan to resume production
in 2024.
In addition, Hydro's aluminum plant in Slovakia will also reduce production by a further 20%, which will be implemented
by the end of January 2022.

Domestically, the fundamentals of the aluminum market are also strong in the short term, yesterday the social library went again and the magnitude is still large, downstream and export demand boosted the shipment of the social library, the reconstruction of inventory in the aluminum rod link also led to an increase in the proportion of aluminum water, and the output and arrival of aluminum ingots were reduced
.
Both of the above factors have a strong driver
for the rise in aluminum prices.

Subsequently, the domestic aluminum fundamentals may weaken, mainly due to the rapid decline in aluminum rod processing fees, the accumulation of aluminum rod social warehouse, superimposed Yunnan, Inner Mongolia aluminum plants recently began to resume production
.
Overall, it is expected that the social treasury will begin to accumulate in January and February next year, which may limit the space
for aluminum prices to continue to rise.
Follow-up suggestions continue to pay attention to overseas energy product prices, overseas aluminum plant production reductions, domestic social bank changes and other factors
.