Shanghai aluminum afternoon comment on February 3

Japan's Marubeni Corporation said that as of the end of December 2020, the aluminum inventory of the three major ports increased at the same time, with the total amount increasing by 5.
1% over the previous month; Domestic social inventories of aluminum ingots and aluminum rods continue to accumulate, highlighting market supply pressure, and spot aluminum prices are expected to fall
.

The domestic Lunar New Year is approaching, and downstream consumption continues to slow down
.
Domestic Shanghai aluminum still maintained consolidation around 15,000 yuan / ton
.
Although the Spring Festival accumulation is still expected
.
However, this year, China encourages local New Year celebrations, resulting in less accumulation than in previous years, and there are still great expectations
for the improvement of downstream operating rates after the Spring Festival.
However, we still believe that the local New Year celebration will lead to the weakening of the Spring Festival effect, or the peak season of construction in March and April, and the destocking will also be less than in previous years
.