Shanghai aluminum short-term shock adjustment However, the medium-term price center of gravity still tends to move downward

Overseas energy crisis is severe, last week Glencore said that Europe's energy crisis has posed a major threat to zinc supply, other smelters in Europe have hardly achieved profitability, triggering zinc prices soared, market panic also led aluminum prices to follow the upside, because aluminum production has not been substantially reduced, so after the mood eased, aluminum prices slightly corrected
.
However, the high price of gas and electricity in Europe, the early production cuts continue to be cashed, so that the supply cost has a certain support for aluminum prices, if the energy shortage continues, there is a possibility
of production reduction and expansion.

There is no major change in the fundamentals of aluminum, the production of the supply side continues to increase, and the resumption of production and new production capacity continue to advance, mainly concentrated in Yunnan, and it is expected that the follow-up supply pressure will still exist
.
In the context of seasonal off-season, it is difficult to significantly improve demand, and the aluminum ingot library continues to accumulate
slightly.

For the current trend, the weak trend of domestic off-season consumption does not change, and production maintains a climbing momentum, although the current stockpile is not obvious, but the pressure of weak fundamentals is increasing, and the price strength is suppressed
.
Short-term aluminum price shock adjustment, but the medium-term price center of gravity still tends to move
downward.