Shanghai aluminum trend is strong, short-term peak season recovery pace is slow

In the external market, today's Lun aluminum is weak and volatile, LME three-month aluminum Beijing time at 15:01 at 1795.
5 US dollars / ton, down 2 US dollars, or 0.
11%,
from the previous trading day's settlement price.

In terms of the market, today's spot trading price of Yangtze River is 14690-14730 yuan / ton, down 20 yuan; Guangdong South Reserve reported 14820-14880 yuan / ton, up 20 yuan; Hua reported 14810-14830 yuan / ton, flat
.
Traders mainly shipped, market sentiment was not good, downstream wait-and-see was the mainstay, and the overall transaction was flat
.

In order to expand aluminum extrusion manufacturing capacity, Vitex Extrusion said that the company has leased a new 50,000-square-foot facility for a long time, focusing on the manufacturing, processing and assembly
of aluminum extrusion.
The new plant will be fully operational
in September 2020.

In terms of supply, aluminum enterprises have steadily released production capacity, Yunnan Hongtai began power testing this week, and the industry investment and recovery capacity continues to release, the operating rate of the electrolytic aluminum industry continues to rise, and the pressure on the supply side may continue to rise
.

In terms of demand, the current consumer side still continues to be weak in the previous period, but the inventory of the aluminum ingot market has not yet shown an inflection point, and the recovery pace in the peak season is slower
than expected.
Pay attention to the improvement of downstream operating rates
.

Overall, the recovery pace of the short-term peak season is slow, but there is limited space below aluminum prices under low inventories, and the supply increment before the end of October is difficult to cope with the increase
in demand in the peak season.
Strategically, it is recommended to hold
more orders with caution.