April 13 Shanghai aluminum morning review

On the macro front, China's March CPI rose 0.
9% year-on-year, lower than expected an increase of 1%, and a slight rebound
from 0.
8% in the previous month.
China's March PPI rose 7.
6% year-on-year, better than expected 7.
5% but less than the previous reading of 7.
8%.

The decline in PPI in March was mainly due to the obvious decline in the price of production materials in March, which was reflected in the recent release of China's official manufacturing PMI for March, and the decline in its purchase price index sub-data indicates that the market supply and demand relationship is actively adjusting, and the upward pressure on industrial product prices has declined
.
At the same time, the prices of coal and crude oil also fell
as a whole.
Although the annual CPI rate rebounded slightly in March, it remained low, mainly due to the 4.
4% year-on-year decline in food prices, which continued to expand
from the previous month.

In terms of the market, under the continuous pressure of high inventory, the cargo holder has a very positive attitude towards shipment, the circulation supply is sufficient, the middleman is looking for a high discount source, the appropriate receipt of goods, the spot price change is small, the downstream enterprises maintain stability, the overall transaction shows that the demand remains unchanged, and the supply increases the pattern
.

On the whole, Shanghai aluminum shows better resistance to decline than Lun aluminum, and the short-term pattern of Shanghai aluminum in the range of 13800-14200 yuan may still be the same, but the expectation of the traditional consumption season of metal in April may stimulate Shanghai aluminum to rise
under the premise of reducing inventory pressure.