Market sentiment eased and Shanghai aluminum rebounded

On the macro front, the Fed minutes firmly contained inflation, with policymakers unanimously agreeing to raise rates by 75 basis points
on concerns about a worsening inflation outlook.
Although the market sentiment has warmed up today, the trend of non-ferrous metals has improved, but the macro pressure still exists, for the change of macro sentiment, can only dynamically track short positions, overnight copper and aluminum shorts have slightly reduced their positions, overnight prices have also been supported
.

The aluminum supply side is still steadily resuming production, the supply pressure is not reduced, and although the downstream consumption has marginally improved, it can not promote the price of aluminum upward, and due to the upcoming consumption off-season, the weak performance of aluminum demand may be difficult to improve significantly, and the current fundamentals are in a weak state
.

In terms of news, Ministry of Commerce spokesperson Shu Hengting said that the Ministry of Commerce will intensify efforts to stabilize bulk consumption
.
Recently, the Ministry of Commerce and relevant departments have issued a number of measures to invigorate automobile circulation and expand automobile consumption, proposing policies and measures
to support the purchase and use of new energy vehicles, accelerate the activation of the second-hand car market, promote automobile renewal consumption, promote the sustainable and healthy development of automobile parallel imports, optimize the automobile use environment, and enrich automobile financial services.
In the next step, we will work with relevant departments to do a good job in policy publicity and implementation to ensure that relevant measures are implemented as soon as possible
.
At the same time, we will actively cooperate with relevant departments to carry out in-depth activities of new energy vehicles and green building materials to the countryside, and encourage places with conditions to carry out green and smart home appliances to the countryside and trade in old ones
.

At present, for aluminum prices, if the price does not fall to a low enough level to trigger a certain reduction in production, then even if the short-term price stops falling and rebounds, there is still resistance to the upside, because the pressure of accumulation in the second half of the year is still there
.
Only when the supply side adjusts and supply and demand are rebalanced can the fundamentals
of supply and demand be improved in the second half of the year.