January 20 aluminum market morning review

Industry information: Chinalco released a performance forecast, and it is expected to achieve a total profit of about 1.
6 billion yuan in 2016, an increase of 7.
3 times
over the same period last year.

In terms of market: on January 19, Shanghai aluminum trading concentration was 13170-13190 yuan / ton, the discount for the month was 110-90 yuan / ton, Wuxi transaction concentration was 13170-13190 yuan / ton, Hangzhou transaction concentration was 13160-13180 yuan / ton
.
Smelters are selling at high prices, the market circulation is less, approaching the Spring Festival holiday, middlemen to clear inventory, reduce inventory for the holiday, downstream enterprises Spring Festival stocking is nearing the end, the willingness to receive goods has fallen, the overall transaction, the holder with the last opportunity of this week's downstream stocking quotation is strong, showing a state of supply and demand
.

In terms of inventory: as of January 19, LME aluminum stocks reported 2300375 tons, an increase of 175 tons per day, a new high since August 26 last year; In the same period, the previous period of aluminum inventories reported 118235 tons, a weekly increase of 13,698 tons, a high since September 14 last year, a six-week increase, but far lower than the average inventory value of 2016 of 200,000 tons
.

The main contract of Shanghai aluminum oscillated overnight to 13,355 yuan, indicating that the risk of short-term aluminum price correction has been released, and technically stopped falling and stabilized
.
In terms of operation, it is recommended that the Shanghai aluminum 1703 contract can be backed by 13200 yuan above the dip, the entry reference is around 13300 yuan, and the target is 13600 yuan
.