Shanghai aluminum maintains a wide range of fluctuations in the short term, and market demand is still relatively pessimistic

Yesterday's aluminum prices fluctuated strongly, and the social inventory of aluminum ingots continued to deteriorate, mainly due to the impact of the epidemic, the transportation in some areas was blocked, and the arrival of aluminum ingots was small
.

In terms of supply, some aluminum plants in Henan and Shandong have recently planned to reduce some production capacity due to poor profitability of high-cost enterprises and environmental protection requirements in the heating season, and the production reduction scale is expected to reach about 200,000 tons.

In terms of demand, downstream demand affected by the epidemic is currently weak, and the overall procurement is mainly
based on rigid demand.
Among them, the operating rate of downstream processing plants in Henan has decreased, and some downstream feedback in East China is about to enter the traditional off-season, and the demand is more pessimistic
.

On the whole, affected by the epidemic and transportation obstruction in many places, the social inventory of domestic aluminum ingots remained low, and the overall spot market was tight
.
In the short term, the fundamentals of domestic aluminum prices still have some support, but the current US dollar liquidity impact and the expected strengthening of global terminal demand are still the market's concerns, and it is recommended to treat
it with the idea of high selling and low absorption.