A sudden accident in an electrolytic aluminum plant led to a 3.36% rise in Shanghai Aluminum by the impact of the industrial chain [SMM brief Review]

According to sources, an electrolytic aluminum tank fire occurred in an electrolytic aluminum plant in Wenshan, Yunnan on the evening of November 18. at present, all production has been stopped, and the annual production capacity is estimated to be 300000 tons. at present, no casualties have been caused by the accident, and the time of resumption is unknown. Affected by the news, Shanghai Aluminum pulled up rapidly in early trading, closing up 3.36% during the day.

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Prior to this, Shanghai Aluminum recorded a decline in 4 of the five trading days, mainly due to multiple negative effects such as the increase in electrolytic aluminum pool, the continuous decline in coal prices and alumina, the collapse of aluminum price costs and the downturn in downstream consumption.

Spot market impact, East China spot early trading discount narrowed, some downstream concentrated replenishment, discount than yesterday narrowed 20-40 yuan / ton to discount 100-80 yuan / ton, early spot aluminum ingot turnover concentrated 18530-18550 yuan / ton. The spot transaction in the Central Plains (Gongyi) continues to maintain a small rising water pattern for East China, with a discount of 70 yuan / ton in the actual month, with a concentration of 18540-18580 yuan / ton.

Alumina market impact, according to a ton of electrolytic aluminum consumption of 1.925 tons of alumina estimated, before the plant resumes production, the theoretical demand of alumina will be reduced by 577500 tons / year, the news has a certain impact on the mood of the current southwest alumina plant with high spot inventory, or catalyze local manufacturers to reduce prices and accelerate the strength and depth of southwest alumina price decline, SMM will continue to follow.

"Yunnan Aluminum Plant accident or Catalytic Southwest Price fall [SMM Alumina Daily Review]

Looking ahead to aluminum prices in the future, SMM believes that the current short-term event that breaks the balance expectations may lead to wider volatility. However, at present, the supply and demand pattern continues to maintain a tight balance, social inventory accumulation has narrowed, but market confidence has yet to be restored.