The news of the RRR cut has limited boost, and the center of gravity of Shanghai aluminum has failed to improve

On the macro front, following the 0.
5 percentage point reduction across the board, the central bank cut interest rates again, lowering the relending interest rates for rural support and small support by 0.
25 percentage points from December 7, and the relending interest rates for 3 months, 6 months and 1 year were 1.
7%, 1.
9% and 2%
respectively.
This is the second time that the People's Bank of China has lowered the interest rate for relending to support farmers and small enterprises, and the market atmosphere has warmed
up again.

In terms of the market, the spot end to the destocking feedback is slightly firm, in the morning East China spot discount around 50 yuan / ton, continued to maintain a stable trend, East China spot trading concentrated 18670-18690 yuan / ton
.
In terms of stocks, LME stocks were 893,700 mt as of Dec 07, down 04,800 mt
from the previous session.
As of December 06, the social stock of aluminum ingots fell by 24,000 tons from last week to 978,000 tons
.

In terms of news, according to data from the General Administration of Customs, the export volume of unwrought aluminum and aluminum products in November 2021 was 509,300 tons, an increase of 6.
2% month-on-month and 20.
1%
year-on-year.
From January to November 2021, the cumulative export volume of unwrought aluminum and aluminum products was 5.
0563 million tons, an increase of 14.
9% year-on-year, hitting a new high level of total exports since March 2020, mainly due to strong foreign demand and good export data
.
Recently, Shandong Port Yantai Port Jinbo United Port officially put into operation China's aluminum industry supply chain, it is reported that Jinbo United Port can meet the annual export demand
of 10 million tons of bauxite.

Fundamentals, affected by sudden accidents, electrolytic aluminum production capacity is not as good as the reduction of production capacity, China's electrolytic aluminum operating capacity has declined for 7 consecutive months, but the decline has narrowed significantly, while the latest data show that electrolytic aluminum inventory continues to decline, and LME aluminum inventory is at a low level, forming a certain support
for aluminum prices.
However, the current alumina continues to decline, the cost of electrolytic aluminum weakens, and the domestic electrolytic aluminum inventory is at a high level in the same period, which puts pressure
on aluminum prices.
Short-term aluminum price volatility is the mainstay
.