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    Home > Chemicals Industry > New Chemical Materials > Aluminum prices are weak, and market demand has not improved significantly

    Aluminum prices are weak, and market demand has not improved significantly

    • Last Update: 2022-12-25
    • Source: Internet
    • Author: User
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    Yesterday's aluminum prices ran weakly, mainly because the US August CPI data exceeded market expectations, the market's expectations of aggressive interest rate hikes by the Federal Reserve, the US dollar index rose again, and aluminum consumption continued to be weak recently, and demand has not improved significantly
    .

    Aluminum prices

    Domestically, due to the shortage of power supply in Yunnan recently, some local electrolytic aluminum enterprises have begun to reduce the load by 10%, or affect the production capacity of about 500,000 tons, and it is necessary to pay attention to the subsequent production situation
    in Yunnan and other regions.
    In terms of demand, the downstream just needs to take goods, aluminum prices are high, and most companies are cautious
    in taking goods.

    The pace of resumption of production in Sichuan is relatively slow
    .
    The water level in Yunnan is low, there is a shortage of power during the dry period, and it is expected that electrolytic aluminum enterprises will start to stop grooving around September 10, reducing the production ratio by 10%-20%.

    The completed production capacity of electrolytic aluminum in Yunnan Province is 5.
    61 million tons, and the operating capacity is 5.
    218 million tons, accounting for 12.
    8% of the total operating capacity of the country, and the output of electrolytic aluminum in the province in August is about 442,000 tons, accounting for 12.
    7%
    of the total output.
    SMM estimates that the operating capacity of electrolytic aluminum will decrease by 700,000 tons from the end of July to 40.
    7 million tons, and may continue to fall to 40.
    5 million tons in the later period.

    In terms of inventories, the weekly decline of the previous period was 9,146 tons to 194,000 tons
    .
    Social stocks increased by 24,000 tons from last Thursday to 696,000 tons, a weekly increase of 15,000 tons, with inventories in the South China Sea and Gongyi regions contributing the main increase
    .
    Pay attention to whether the social stock can return to the trend
    of dematerialization after the end of the small long holiday.
    In terms of spot market performance, on the first trading day after the holiday, the spot trading price in Wuxi was 18690 yuan / ton, the spot transaction price in Foshan was 18630 yuan / ton, and the spot transaction price in Gongyi area was 18600 yuan / ton
    .
    Downstream on-demand procurement, the transaction is general
    .
    Foshan aluminum rod processing fee transaction is weak, and the quotation is moved down under the suppression of terminal orders
    .

    Domestic and foreign electrolytic aluminum supply side disturbance is frequent, electrolytic aluminum supply growth rate is not as expected, demand is also falling simultaneously, inventory remains stable overall, fundamentals are not as expected to appear excess, aluminum prices have shown strong volatility in recent days, but macro weakness will continue to restrict the upper edge
    of prices.

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