[brief comment on Aluminum in SMM stage] supply and demand are weak and weak to go to the warehouse to continue multi-empty warehouse reduction in Shanghai aluminum shows a weak shock.

Published: Jul 5, 2019 16:23

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The double weakness of supply and demand goes to the warehouse to continue the multi-vacancy reduction of Shanghai aluminum shows a weak shock.

SMM, July 5 / PRNewswire-Asianet /-

Shanghai Aluminum main contract 1908 opened in the morning at 13880 yuan / ton. Mainly due to the overnight closing of a large number of short positions at the end of the Shanghai aluminum market, Shanghai aluminum rose sharply, and the bulls took the initiative to close their positions after the opening of the market today. Shanghai aluminum quickly gave up its gains the night before, and then moved around the 10-day moving average, touching 13780 yuan / ton at the end of the day and closing at 137990 yuan / ton. The position was reduced by 7576 hands to 214708 hands, and the Shanghai Aluminum Water stop position was reduced by 14480 hands to 676080 hands. At the same time of weakening demand, the resumption of production of supply-side aluminum plants is not active, the whole presents the double weakness of supply and demand. However, from the social aluminum ingot inventory, the speed of storage has not slowed down significantly, the aluminum price is still supported, in addition, alumina, electricity price, anode and other costs still have room to decline, aluminum prices are expected to show weak shock.

(SMM Yi Liang 021 20707892)

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