Aluminum prices are weak and volatile in the short term, and they are treated with a wait-and-see approach

Overnight, the Fed raised interest rates by 75bp as scheduled, its biggest single strength since 1994, and said it would continue to aggressively tighten monetary policy to control inflation.
The market continued to fall this week, strong expectations and weak reality are the current status quo, at present, the resumption of work and production brought about by the gradual liberalization of the national epidemic and active fiscal policy are the current two macro main lines, but the relatively cautious transaction under strong expectations is the status quo
observed so far.

In terms of news, the Australian Energy Market Operator (AEMO) recently announced that Australia is currently facing a power shortage, with a total of four local electrolytic aluminum companies with a total production capacity of 1.
722 million tons, all of which are distributed in the power shortage area
.
At present, the emergency power outage caused by the power shortage is limited to residential electricity consumption, and it remains to be seen
whether the subsequent power shortage storm will affect industrial electricity consumption.

In terms of domestic supply, after June, the supply side continued to resume production and the planned release of new production capacity, mainly concentrated in Yunnan, Gansu, Guangxi and other places
.
In terms of consumption, the market maintained that it just needed to take goods, but the market transaction sentiment remained weak and the overall performance was not good
.

In terms of price, the current growth rate of electrolytic aluminum operating capacity has slowed down, demand or under policy support has been repaired, and the recent panic shipments of spot traders have led to smooth destocking of aluminum social inventory, and low inventory at home and abroad has supported aluminum prices, but in the short term, domestic aluminum prices are dragged down by macro pressure and unclear domestic warehouse events, and it is recommended to treat it with a wait-and-see approach in the short term
.