Global trade frictions escalated, and aluminum prices fell under pressure

In the spot market, as of May 31, Yangtze River Nonferrous Metals was 14,190 yuan / ton, down 50 yuan / ton from last week; Shanghai trade 14180 yuan / ton, down 40 yuan / ton from last week; Guangdong South Reserve 14240 yuan / ton, down 80 yuan / ton from last week; On May 30, the foreign discount was 24.
5 US dollars / ton, which was 7.
25 US dollars / ton compared with last week; The bonded zone premium was $105/mt, unchanged
from last week.
Last week, downstream manufacturers considered purchasing more for replenishment on Monday, and in the following days, on-demand purchases were not high, and the wait-and-see attitude was strong, and on Friday due to the low price of aluminum superimposed on the weekend warehouse, the enthusiasm for receiving goods was significantly increased
compared with the previous three days.

In terms of inventory, as of May 30, domestic spot aluminum stocks were 1.
212 million tons, down 70,000 tons from May 23; the inventory of warehouse receipts in the previous period on May 31 was 247926 tons, down 28,876 tons from May 24; LME aluminum stocks were 1155025 tons on May 31, down 53,875 tons
from May 24.
At present, the proportion of aluminum water in electrolytic aluminum enterprises is high, and the consumption arrival remains low, and destocking continues to occur, but some traders reflect that shipments are not as good as last month, which may affect the speed of
destocking.

On the macro front, the US-Japan summit negotiations did not reach an agreement on the substance of trade; Trump announced that he would impose 5% tariffs on all goods in Mexico, threatening to raise the tax rate month by month; China's Ministry of Commerce said that China will establish an unreliable entity list system, and global trade disputes continue to cast a shadow
over economic growth.
Data showed that China's official manufacturing PMI in May was 49.
4, lower than the expected 49.
9, down from 50.
1 in the previous value and hitting a three-month low
.
The overall macro atmosphere and economic data have put pressure
on metal prices.
In the industrial chain, time passed, high profits stimulated the supply of alumina, and the price loosened, but due to the environmental impact of the factory recovery still takes time, the market supply pressure is not large, the price of alumina is running
at a high level.

From the survey response, the amount of terminal procurement of aluminum ingots and aluminum materials has decreased, the number of shipments by traders has decreased, and consumption is weakening
.
Last week, the cost of aluminum rod processing was reduced, the proportion of aluminum water ingots may recover, and the range of spot destocking declined as the output and consumption of ingots turned weaker, which dragged
down aluminum prices.
However, considering that the current operating capacity of electrolytic aluminum is lower than the same period last year, and the number of new investments is limited, the resumption of production progress is lower than expected, and the output growth is low, which supports the aluminum price, and the 14,000 yuan / ton line has strong support
.