Shanghai aluminum prices continue to come under pressure, and the market may be difficult to improve in the short term

European supply is still tight overall, under the influence of high natural gas prices, high electricity prices and high costs still suppress refinery production activities, overseas aluminum plants still have new production cuts, it is understood that Europe still has small factories to reduce production at a loss, last night Alcoa's Lista reduced production by one-third, reducing production by about 31,000 tons, as of the current round of production capacity in Europe due to losses of about 230,000 tons
.
Overall, the overseas energy crisis situation is still grim, and overseas aluminum plants still have the risk
of continuing to reduce production.

Domestic high temperature weather has eased, the impact of power rationing has weakened, especially in Sichuan power rationing gradually lifted, electrolytic aluminum smelter production began to recover, the early supply side production reduction support has weakened, demand side performance is still weak, and the current epidemic in many places in China, downstream consumption may be difficult to improve
significantly in the short term.
From the current fundamental performance of aluminum supply and demand, there is little support for the upward movement of aluminum prices
.

Macro pessimism has recently fermented, from overseas trading inflation interest rate hikes, weakening European economic data, domestic epidemic fermentation, etc.
, fundamentals, after the end of the power rationing again entered the cycle of resumption of production, and European natural gas prices began to adjust, combined with the current weak demand, the epidemic has suppressed market sentiment, and prices are expected to continue to come under pressure
.