The impact of aluminum ingot imports on aluminum prices does not change the upward trend.

Published: Jul 7, 2020 09:48
Source: Jinyuan futures

SMM News: aluminum prices rose sharply on Monday. Lun aluminum closed at $1635 a tonne, up 1.30 per cent. The main contract of Shanghai Aluminum is 14125 yuan / ton. The position in 08 contract day decreased by 1451 to 166738, while the Shanghai Aluminum Index reduced its position by 5551 to 434320, an increase of 70 yuan / ton, or 0.5%, mainly by short positions.

Spot according to the SMM, aluminum high range before noon shock, the spot price in Shanghai is between 14410 and 14420 yuan / ton, and the price in Wuxi is between 14430 and 14450 yuan / ton, which is slightly higher than that on Friday, and the rising water has fallen sharply to between 30mur50 yuan / ton. Yesterday, the supply tension in Wuxi market increased, and the price quoted by the holder was very strong, but relatively speaking, the supply in Shanghai was more relaxed, and the price was 20 yuan / ton lower than that in Wuxi. A large family announced its purchase plan yesterday, but the actual receipt of goods in Shanghai is on the high side. Although the middleman is willing to accept the goods, it is more difficult to reach an agreement with the holder on the price, and the two sides have reached a stalemate. In addition, imports of aluminum increased significantly yesterday, suppressing the decline of rising water. From the downstream point of view, yesterday's normal delivery of goods, procurement enthusiasm is not high. The overall transaction in East China was poor yesterday.

In terms of news, while domestic aluminum prices have soared, domestic and foreign aluminum prices have also been upside down, the import window of aluminum products has been opened, the import volume of unwrought aluminum has increased significantly, while the export volume of aluminum and aluminum products has decreased. Customs statistics show that from January to May this year, China's net exports of aluminum and aluminum products decreased by 790000 tons compared with the same period last year, of which unwrought aluminum flowed into 274000 tons.

Overall, demand is both internal and external weak, coupled with the impact of imported aluminum alloy ingots, the traditional off-season recycled aluminum industry is facing a cold winter, even if the overall economic data or support aluminum prices in the short term, it may be difficult for aluminum prices to continue to break up.

Operation suggestion: test air

Scan the QR code and join the SMM metal communication group.

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
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
22 hours ago
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
Read More
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
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.
22 hours ago
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
22 hours ago
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
Read More
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
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.
22 hours ago
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
22 hours ago
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
Read More
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
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.
22 hours ago