Aluminum prices maintain range-bound impulses and lack of upward momentum

Domestic electrolytic aluminum production capacity has slowed down, the current production capacity in Yunnan and Inner Mongolia has recovered and continued to increase, the subsequent production capacity to be restored is concentrated in Qinghai and Guangxi, and it is expected that the production capacity release will be in the second half of the year
.

In terms of consumption, at present, the full resumption of work and demand improvement in China has not yet been fully realized, and consumption is still affected by the epidemic in many places, and it is necessary to pay attention to the subsequent recovery of consumption
.

Near the end of the month, the monthly ticket transaction is relatively strong, some traders began to use the next month ticket quotation, the discount is larger than the monthly pass, the downstream buying is general, the overall transaction is light, the actual transaction on SMM Foshan aluminum price discount 50-liter 10 yuan / ton around, in the short term, with the concentrated arrival of Yunnan, Guangxi and other regions, the downstream consumption growth rate of the South China market is not as expected, to the warehouse or there is a bad situation, short-term spot discount pattern is difficult to reverse
.

In terms of inventory, on May 23, 2022, SMM counted that the domestic electrolytic aluminum social stock was 941,000 tons, down 24,000 tons
from last Thursday's inventory.
As of May 25, LME aluminum stocks fell by 5,825 tonnes from the previous session to 481,600 tonnes
.
With the improvement of the epidemic and the support of policies on transportation, domestic social stocks remained depleted during the week, and overseas stocks fell below 490,000 tons, at a historical low
.

Overall, the domestic aluminum social inventory in some areas of the arrival is less and Wuxi, Gongyi and other areas downstream replenishment of the promotion, maintain the state of destocking, but the recent downstream procurement efforts have declined, aluminum spot market trading is general, with the early on-the-go aluminum ingot concentrated arrival domestic aluminum social inventory decline or will slow down
.
At present, the overall pessimism of industrial products and the increase in aluminum supply obviously still interfere with the entry of long funds, and the short-term Shanghai aluminum sharp upward momentum is insufficient, or maintain range volatility, and the subsequent recovery of downstream consumption and changes in terminal demand still need to be paid attention to
.