The main force of Shanghai aluminum fell sharply, and the short-term shock was weak

Market focus: (1) The ECB announced a €750 billion purchase program against the coronavirus pandemic, covering both private and public sector securities
.
(2) On the 19th, domestic electrolytic aluminum stocks increased to 1.
647 million tons, a weekly increase of 54,000 tons; domestic aluminum rod stocks decreased by 01,700 tons from last Thursday to 197,600 tons, and the outbound increment was limited
.

Spot analysis: On March 19, spot A00 aluminum was reported at 11710-11750 yuan / ton, with an average price of 11730 yuan / ton, down 790 yuan / ton
daily.
Due to the morning aluminum leakage to the drop limit, and the market spot easing pattern has not changed, the holders consider that the position is difficult to close after the drop limit and it is expected that the price will still have room to fall in the later period, they are eager to ship, the market morning oversupply situation is very obvious, the shippers are significantly more than the receivers, and the transaction is extremely poor
.

Warehouse receipt inventory: Shanghai aluminum warehouse receipts totaled 301918 tons on Thursday, an increase of 427 tons per day; On March 18, LME aluminum stocks were 967325 tons, a daily decrease of 5,725 tons, and a decline of 26 consecutive days
.

Main positions: the top 20 long positions of Shanghai aluminum main 2005 contract were 89275 lots, minus 5355 lots, short positions were 102750 lots, daily minus 7436 lots, net short positions were 13475 lots, daily minus 2081 lots, long and short were reduced, and net space was reduced
.

The main force of Shanghai aluminum fell sharply
in 2005.
The global epidemic continues to spread, economic activities have been greatly impacted, liquidity risks have intensified, and market panic has spread; At the same time, domestic electrolytic aluminum production continued to grow, downstream aluminum production fell year-on-year, terminal automobiles, home appliance industries are still facing pressure, aluminum rod outbound increment is still limited, and the pressure on aluminum prices is greater
.
However, the world continues to release liquidity, and policies to deal with the epidemic continue to increase; At the same time, China's epidemic situation has improved, enterprises have resumed work and production one after another, and downstream demand will gradually improve, which is conducive to the stabilization
of aluminum prices.
In terms of spot, holders are eager to ship considering that the position is difficult to smooth after the drop limit and expect that the price will still have room to fall in the later period, and the oversupply situation in the market in the morning is very obvious, and there are significantly more shippers than receivers, and the transaction is extremely poor
.
Technically, the main 2005 contract of Shanghai aluminum touched the limit during the session, reducing positions and shrinking, and it is expected that the short-term shock will be weak
.