Daily Review of waste Aluminum Price on April 10, 2020

[high pre-festival inventory suppresses liquidity in the waste aluminum market is difficult to see significant improvement] Today's A00 aluminum price continued to rise 120 yuan / ton, mainly due to the OPEC reached an agreement to reduce production last night and yesterday's inventory plunged 69000 tons, however, these factors are relatively limited to price support, first, although OPEC production has been reduced, but its strength is not as strong as expected, crude oil prices fell back; Second, the inventory of aluminum ingots has dropped sharply, but the main reason lies in the short-term consumption of bottom hoarding and recycled aluminum by downstream enterprises, which does not fully represent a great improvement in consumption. At present, the main problem affecting the price of waste aluminum is that the liquidity is too poor, and the main culprit is the suppression of high price waste aluminum inventory before the festival. After the festival, because the aluminum price continued to fall, and the waste aluminum recyclers returned to work late, missed the opportunity of pre-stop loss shipment, resulting in its resumption of work, there are a large number of high-price inventory. On the other hand, in the downstream, the poor demand makes the recycled aluminum enterprises have a low tolerance for the price of waste aluminum, which makes the quotation of the trading order too large and it is difficult to conclude the transaction. At the same time, although the epidemic situation has improved, the output of waste aluminum reduced due to the disappearance of early consumption and fewer waste pickers in the current environment, resulting in a limited supply of new waste aluminum and too little inflow into the low-cost waste aluminum market. it is difficult to activate the liquidity of the waste aluminum market. At present, the price of used profile aluminum in Shanghai is 9800 yuan / ton without tax, and that of broken raw aluminum in the vicinity of 92 effluent is 9800 yuan / ton without tax, and the transaction is less.

(Shanghai Nonferrous Network Yi Liang)