Downstream demand is still light, and aluminum prices are under pressure to fall

Stimulated by the news of successive production cuts, the internal and external aluminum prices soared, paying attention to whether the scale of production cuts in the later period will continue to expand, this week the aluminum ingot social library has fallen, which has some support for aluminum prices, but the current demand performance is still not out of the weak pattern, aluminum prices have insufficient
momentum.

On the macro front, the minutes of the Fed's July interest rate meeting showed that Fed officials emphasized raising interest rates to curb inflation as the most important goal at the moment, believing that interest rate hikes will slow down at an appropriate time in the future, and the overall statement was slightly dovish, and the dollar index edged higher
.

In the past two days, supply disruptions are the main factors supporting higher aluminum prices, the European energy crisis continues, high electricity prices have led to an increase in overseas refinery shutdowns, it is reported that Norwegian Hydro will close its primary aluminum plant in Slovakia by the end of September, and its Sunndal sora may reduce production by 20% due to
strikes.
Domestic electrolytic aluminum production was affected by high temperature weather, power shortage in some areas, and refineries were forced to reduce production
.

The scale of production reduction on the internal and external supply side has expanded, and the good news has boosted the trend of aluminum prices, but at present, the demand side has not been separated from the weak pattern, the poor performance of real estate drags down the performance of downstream consumption, and the support for aluminum prices is weak.