May 4 Shanghai aluminum morning review

In terms of news, the market continues to expect Shandong Province to announce illegal production capacity, it is expected that the illegal production capacity is about 2 million tons, for the subsequent illegal production capacity treatment plan, the market interpretation is different, but the slowdown in the growth rate of new production capacity is still in a high probability event, light positions and long holding, waiting for the news to land.

In terms of the market, the morning spot market holders continued to raise prices, downstream on-demand procurement, the overall transaction increased, Shanghai mainstream price of 13800-13820 yuan / ton, discount about 60 yuan / ton, Guangdong 13850-13860 yuan / ton
.
In May, the fundamentals of the domestic aluminum market showed signs of weakening again, due to the decline in the high level of downstream consumption, and inventories also rose
again.
However, the main factor affecting the price trend is still the policy impact
.
The production capacity reduced due to the production restriction policy in the early stage was very small, which caused the market to bear the impact of the policy, but the new production was obviously curbed, and the growth of operating capacity slowed down
significantly.
The relevant policies in Shandong, which the market is concerned about, are expected to be introduced
in the near future.
Operationally, it is still recommended to focus on the idea of pullback
buying.