Aluminum fluctuated in a narrow range, and market sentiment was slightly cautious

On the macro front, the continued surge in coronavirus cases in Europe has created uncertainty for the economy, driving some safe-haven money to the greenback, and hawkish expectations from the Federal Reserve have further supported the greenback
.

Recently, the overall contradiction between supply and demand in the aluminum market has improved, the overall operating capacity of domestic electrolytic aluminum has increased slightly, and industrial profits have gradually recovered
.
This week, the bulls who entered the aluminum market in the early stage of the market closed their positions in profit, and aluminum prices fell
.

Subsequently, it tends to think that the domestic fundamentals tend to weaken, on the one hand, aluminum rod, aluminum rod processing fees have fallen from the previous high, on the other hand, the domestic spot discount is widening, it is expected that the social library will accumulate in January and February next year, and the accumulation will slow down or turn to destocking
at the end of February and early March.
Therefore, before the slowdown of the social library, maintain the judgment
of the weak pattern of aluminum prices.
It is recommended to pay attention to factors such as the subsequent production restrictions of European aluminum plants, environmental protection policies of the Winter Olympics, and changes in the social treasury
.

Overall, the supply low point in the near term has passed, and there is a certain expectation of supply increase in the medium and long term
.
At the same time, electrolytic aluminum inventories fell again and electricity prices in most overseas regions hit record highs, and production was reduced and stopped in some areas, forming a strong support
for aluminum prices.
However, the current atmosphere of alumina and industrial products has weakened, coupled with the repeated global epidemic and the end of the year, the market sentiment is slightly cautious
.