May 17 Shanghai aluminum brief comment

Recently, due to the shortage of aluminum supply in Europe and other places
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LME inventories continue to deteriorate, and have now fallen to around 500,000 tons, and with the high price of electricity in Europe and the problem of high costs, more production capacity is facing shutdown storms, and subsequent LME warehouses will continue to face the risk of inventory decline.

Domestic supply is relatively abundant, electrolytic aluminum enterprise production capacity can be released normally, drag on aluminum prices more intuitive factors from the demand side of the weakness, in the context of the epidemic in many places, downstream enterprises to resume work and production still need to wait, short-term demand support is insufficient Shanghai aluminum still has a weak pullback possibility, the following support can continue to pay attention to 20,000, operational recommendations for the time being
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