[minutes of internal morning meeting of SMM aluminum] Alumina price reduction superimposed consumption weakens, but going to the warehouse will continue

Published: Jun 12, 2019 10:00

Source: SMM

Save

Surface: overnight Shanghai aluminum movement is insufficient, closed at 14035 yuan / ton, unchanged from the daytime closing price; overnight aluminum fell back to close at the inverted hammer line, closing price at $1778, up $1 or 0.06 per cent from the previous day. .

6.12 SMM internal aluminum morning meeting minutes: overnight Shanghai aluminum movement is insufficient, closing at 14035 yuan / ton, unchanged from the daytime closing price; overnight aluminum fell back to close at the inverted hammer line, closing price at US $1778, up US $1 or 0.06% from the previous day. Macro: China's local bond issuance exceeds 200 million yuan, and the industry expects to basically complete the hairstyle task by the end of September, and the rebound in infrastructure will increase confidence.

Fundamentals: the transaction price of cost end alumina in Lianyungang area has been reduced by about 60 yuan, and the price of FOB in Australia has been reduced by about US $15. There is basically no alumina output in June, but it is expected that Shandong and Chongqing Bochuang, Bosai Shuijiang and other re-production projects will continue to contribute to the new output. At the same time, the overhaul of Huayin in Guangxi has been completed, and Xinghua Science and Technology has gradually returned to full production. Aluminum Huaxing, Chinalco mining industry, Guangxi Xinfa, Sanmenxia hope and other alumina plant operation capacity have rebounded; Bauxite: according to SMM in June Guangxi environmental supervision and inspection is very strict, there are crushing plants and private mines closed, local ore prices are showing signs of rising; consumer side: consumption is expected to weaken in June, but according to the current processing industry orders, weakening efforts are not great.

Spot: yesterday's Shanghai spot transaction price was between 14050 and 14070 yuan / ton, and the trading price was up 10 to 20 yuan / ton. The transaction price was nearly 50 yuan / ton higher than that of yesterday. Yesterday, the receipt in East China was average, and the inquiry between buyers and sellers was active. The actual transaction was slightly deadlocked. Due to the rise in prices, the willingness to receive goods downstream is not strong, the overall transaction in East China is general. Conclusion: under the background that the long-term alumina price is empty and the consumption is gradually weakening, the aluminum price shock is weak, but it is expected that the storage will continue, and the space for Shanghai aluminum to fall is limited.

Plate surface Shanghai aluminum aluminum price morning news output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 7, 2026 17:24

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

Feb 7, 2026 17:24

Feb 7, 2026 17:23

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

Feb 7, 2026 17:23

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

Feb 7, 2026 17:23