Risk aversion heats up again In the short term, aluminum prices remain weak

In terms of inventory, LME aluminum stocks were 1192075 tons, down 3,075 tons from the previous trading day; The aluminum inventory in the previous period was 731617 tons, an increase of 3310 tons
over the previous trading day.
Official inventory data shows that electrolytic aluminum inventories in China's mainstream consumption areas have repeatedly reached new highs this year, reaching a historical peak of 2.
284 million tons on March 23, and electrolytic aluminum destocking has accelerated
significantly after entering May.
So far, aluminum inventories have fallen for 16 consecutive weeks, reaching the average cycle
of continuous destocking in the past decade.

In terms of spot, Shanghai trading concentration is 14240~14260 yuan / ton, discount for the month is 60~40 yuan / ton, Wuxi transaction concentration is 14240~14250 yuan / ton, Hangzhou transaction concentration is 14260~14270 yuan / ton
.
Holders are not willing to sell at a reduced price in the aluminum pullback stage, the spot discount narrows, the willingness of middlemen to receive goods weakens, the enthusiasm of downstream enterprises for procurement has not improved, and the overall transaction is relatively
deadlocked.
After the aluminum diving in the late afternoon, the end of the day picked up, and there was almost no transaction in East China in the afternoon, and the quotation span was large, and the quotation was 14150~14220 yuan / ton
.

In terms of alumina, Guiyang's primary alumina quotation was 2870 yuan / ton, unchanged from the previous trading day; Shanxi first-class alumina quotation of 3,000 yuan / ton, unchanged from the previous trading day; Henan first-class alumina quotation was 3,005 yuan / ton, unchanged from the previous trading day
.
Alumina prices remained stable
for several days in a row.

Near the close of the day, the price of Shanghai aluminum bottomed out and rebounded, repaired, and continued to fluctuate overnight
.
In terms of fundamentals, electrolytic aluminum inventories continued to decline, and the recent decline in inventory was mainly due to fewer arrivals and an increase in the proportion of aluminum water in electrolytic aluminum plants in the northwest region
.
Although the strong price performance of alumina has led to the rise in the cost of electrolytic aluminum, giving strong support to aluminum prices, weak demand will limit the upside of aluminum prices, superimposed on the continued heating up of the trade war, market sentiment is pessimistic, and it is expected that Shanghai aluminum will maintain a volatile operation
in the short term.