Destocking is not as smooth as the previous period Aluminum prices pulled back slightly yesterday

According to SMM survey, the domestic electrolytic aluminum social inventory was 739,000 tons, an increase of 15,000 tons from Monday, and Wuxi and the South China Sea region turned small during the week, mainly because the arrival tension in Wuxi was eased compared with the previous period, while the high aluminum price during the week suppressed downstream demand, and the outbound decreased month-on-month, in addition, some aluminum ingots in the northwest region in the South China Sea region were concentrated in arrival
.

At this stage, the disturbance of the supply side of Shanghai aluminum is still the main contradiction, Shenhuo shares disclosed semi-annual report, affected by Yunnan power cuts, the company's holding subsidiary Yunnan Shenhuo capacity utilization rate is currently only 61.
11%, the 800,000 tons of business plan formulated at the beginning of the year will not be completed; Guangxi issued the "Handling Note on Urging Electrolytic Aluminum Enterprises to Avoid Wrong Peaks", which clearly proposed that it plans to implement peak avoidance electricity consumption for electrolytic aluminum enterprises in the region, and reduce the average load of electricity consumption by more than 30% by August 15, 2021, and the six Guangxi electrolytic aluminum enterprises involved in the planned decompression capacity are predicted to reduce production to 450,000 tons
.

From the demand side, although the overall production schedule of aluminum plate and foil enterprises in Henan Province has shifted back by 10-20 days, it is mostly order transfer and order accumulation, and there is also a demand for replenishment in the later stage, and the rise in demand for replenishment of finished products will inevitably drive the replenishment demand
of raw material electrolytic aluminum.

Overall, power rationing continues to affect the supply of electrolytic aluminum, the current electrolytic aluminum social inventory has been at a low level, the late consumption season is coming, destocking is expected to accelerate, by the end of the year inventory is expected to be extremely low, in the short term the production of processing enterprises in some areas does not change the long-term strong trend
of aluminum prices.