Affected by multiple favorable factors, the support below Shanghai aluminum is strong

The epidemic in Guangxi has caused a local aluminum plant to stop production, which is expected to affect the annual production capacity
of 420,000 tons of electrolytic aluminum.
At the same time, due to the obstruction of transportation in Baise area due to epidemic control, coupled with the suspension of some alumina plants in the northern region due to weather and Winter Olympics, the price of alumina has risen, making the cost support of electrolytic aluminum stronger
.

Overseas, due to excessive pressure on electricity costs, Hydro's aluminum plant in Slovakia further reduced production to 60%, although the impact on production capacity is not large and the market has expected this, but the news was announced when domestic supply is also under greater pressure, which still has a certain impact
on sentiment.

In terms of inventory, the accumulation of domestic aluminum ingot social library during the Spring Festival is not large, the current inventory has been at a relative low point in recent years, LME inventory although due to hidden inventory squeeze and sharp increase, but still at a historical low
.

In terms of macro, infrastructure development is expected to be optimistic, and it is expected to drive domestic aluminum demand
in the medium and long term.
In summary, aluminum prices are currently affected by multiple positive factors, and the support below is strong, and it is expected to maintain a strong trend of volatility in the short term and maintain a long-order strategy
of bargain hunting.