January 6 Shanghai aluminum afternoon comment

In terms of news, the resumption of electrolytic aluminum production in Yunnan has basically stopped due to electronic supply, and the pressure of limiting electrolytic aluminum production at the Northern Winter Olympics is not large; European natural gas prices have soared, and many European aluminum plants such as Hydro and Alcoa have begun to reduce production, and more capacity may join the production cut
.
The 14th Five-Year Plan of Yunnan Province requires accelerating the promotion of electrolytic aluminum projects under construction to be put into operation as soon as possible; Guangxi encouraged electrolytic aluminum enterprises to accelerate production and resume production
in the first quarter.
East China spot performance is still strong, inventory dematerialization is relatively fast, South China due to the increase in profile shutdown, demand into the off-season
.

The European natural gas crisis has led to concentrated production cuts in aluminum plants, and overseas supply has continued to decline; Domestic consumption is strong, approaching the holiday is still going to the warehouse at a high speed, and the spot discount is significantly narrowed, and the accumulation expectation at the end of the year is weakened, it is recommended to go long or wait and see
.