Aluminum prices remain high and volatile, rising heights or resistance

On the macro front, the Fed is widely expected to announce a 50 basis point interest rate hike on June 15, with the US dollar fluctuating at high levels and non-ferrous metals under pressure
.

In terms of supply, the current national electrolytic aluminum operating capacity reaches 40.
598 million tons, and the domestic effective built production capacity is 44.
365 million tons, with an operating rate of about 91.
5%.

The profit of alumina smelting was stable, and the newly expanded production capacity was steadily landed, but the import volume was suppressed, and the overall supply of alumina became loose; External interference factors subsided, superimposed on smelting profits are good, it is expected that the output of electrolytic aluminum in June will be about 3.
34 million tons, but the cost is still supported, and there is still a gap
in imports.

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
.
With the resumption of work and production, the operating rate of aluminum processing enterprises recovered month-on-month, but overseas demand faced downward pressure
.
Domestic electrolytic aluminum social stocks fell by 29,000 tons this week, and bonded zone stocks were flat
last week.
Domestic electrolytic aluminum stocks continue to deteriorate, but the Guangdong aluminum storage incident has caused concern among spot participants, and it is recommended to maintain a wait-and-see
.

Overall, the policy side is actively making efforts, the demand side is expected to improve strongly, superimposed on the continuous decline in inventory, aluminum prices are expected to rise, but in view of the domestic supply-side pressure still exists, aluminum prices rise high or resistance
.