Market consumption is less than expected Shanghai aluminum is weak

Yesterday's aluminum price was weak, mainly due to the problem of repeated pledge in a warehouse in Foshan, it was rumored that several traders failed to mention the goods, and may face relatively large losses, coupled with market rumors that many warehouses have a certain degree of repeated pledge problems, resulting in a heavy negative market sentiment, there are certain concerns about the circulation of the spot market, and it is necessary to pay attention to the follow-up investigation
.

On the supply side, the current domestic electrolytic aluminum production capacity has slowed down, and production continues to be released
.
In terms of consumption, with the acceleration of the pace of resumption of work and production in Shanghai and surrounding areas, downstream consumption has remained stable and improving
.

In terms of inventory, on May 30, 2022, SMM counted that the domestic electrolytic aluminum social stock was 923,000 tons, down 14,000 tons
from last Thursday's inventory.
As of May 31, LME aluminum stocks fell by 6,825 tonnes from the previous session to 458,800 tonnes
.
With the improvement of the epidemic and the support of policies on transportation, domestic social stocks remained depleted during the week, and overseas stocks fell below
460,000 tons.

Overall, the current market supply-side increment continues to release, but with the improvement of the epidemic logistics smooth, domestic social inventory continues to destock, coupled with the recent release of favorable policies, it is expected that the subsequent market demand will pick up, need to be vigilant against spot trade fluctuation risk, considering the cost support problem recommended to be cautious bullish
in the short term.