The aluminum market is weak and volatile in the short term, and consumption may improve in the later period

Yesterday, the main contract of Shanghai aluminum 2206 opened at 21835 yuan / ton, the highest price of the day was 21895 yuan / ton, the lowest was 21720 yuan / ton, and closed at 21800 yuan / ton, down 265 yuan, or 1.
2%,
from the closing price of the previous trading day.

Aluminum prices were weak and volatile
yesterday.
Overseas, the situation in Russia and Ukraine has not yet made substantial progress, but the energy logic still has some support
for external aluminum prices.

In terms of domestic supply, the current profit of electrolytic aluminum is still at a high level, the profit margin has narrowed slightly, the production capacity of Yunnan, Guangxi and other places continues to rise, the output is released one after another, and the supply pressure continues
.
In terms of consumption, the State Council recently issued the Notice on Effectively Ensuring the Smooth Operation of Freight Logistics, which requires attention to the recovery of transportation in the later period and the pre-holiday
stocking of the downstream.

In terms of inventory, domestic social treasury data shows that inventory has been slightly destocked
.
Overseas inventories fell to around 590,000 tonnes, a historic low
.
As of April 18, domestic aluminum ingot stocks were 1.
065 million tons, down 26,000 tons
from the previous week.
As of April 20, LME aluminum stocks fell by 11,500 mt from the previous session to 592,200 mt
.

In terms of price, the current aluminum market is affected by the epidemic There is a phased mismatch between supply and demand, and it is recommended to treat it with a wait-and-see approach in the short term, and it is expected that consumption will improve as the epidemic eases and the backlog of orders is released from terminals and downstream
.