Falling inventories have pushed aluminum prices to strengthen domestic demand

Domestic inventories continued to fall sharply in May, mainly driving
the rise in electrolytic aluminum.
The recovery of domestic demand and data performed better, but mainly concentrated in real estate infrastructure, and industrial profiles involving exports performed weakly
.

The boost measures at the two sessions were less than expected, but the recovery in domestic demand remained optimistic
on the inventory side.
The proportion of SHFE warehouse receipts dropped to 41%, with only 132,900 tons of warehouse receipts
.
However, at present, from the perspective of the position of the 06 contract, the risk of forcing the position is not large
.

At present, the profit of electrolytic aluminum has exceeded 1,000 yuan / ton, and the continuous recovery of production profits is conducive to improving the enthusiasm of enterprises to resume production, and enterprises are expected to actively check and restore production capacity
in the later stage.
The cost of new production capacity in Yunnan is in the low-cost range, and from the perspective of the supply side, the pressure line of 13200-13500 yuan / ton is worth paying attention to
.

Domestic downstream processing demand remains strong, aluminum rod processing fees remain high, aluminum ingot and aluminum rod inventories continue to fall, outbound is relatively normal, and whether the demand side is sustainable and strong can continue to be concerned
.

At present, the recovery speed of overseas demand is still slow, and overseas aluminum prices are still hovering at the bottom
.
However, demand is expected to recover
gradually month-on-month.

Follow-up recommendations can focus on demand recovery, inventory changes, aluminum processing fees, and ingot import profits
.
In addition, it is also necessary to pay attention to the pressure
of imported aluminum ingots.
And the export of aluminum profiles once suffered a loss, and the later export may decrease
.