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Going to the Treasury is expected to boost the strong shock of Shanghai Aluminum [closing Review]
Apr 18, 2022 15:50CST
[the stock removal is expected to boost the strong shock of Shanghai aluminum] Shanghai aluminum fluctuated strongly during the day, closing up 0.44%, and the center of gravity of the futures price did not move up further. The market atmosphere is still good, the domestic electrolytic aluminum production capacity is expected to continue to increase, but the social treasury has also declined slightly, and there is a high probability that it will continue to go to the warehouse in the future, and the aluminum price is on the strong side.

Shanghai Aluminum fluctuated strongly during the day, closing up 0.44%, and the center of gravity of the futures price did not move up further. The market atmosphere is still good, the domestic electrolytic aluminum production capacity is expected to continue to increase, but the social treasury has also declined slightly, and there is a high probability that it will continue to go to the warehouse in the future, and the aluminum price is on the strong side.

Earlier, the Premier of the State Council said at the National standing Committee that he would cut the reserve requirement at a timely time. On Friday, the domestic reserve rate was lowered to the ground. The market had expected it early, and the response of commodities to this was limited. However, the overall domestic stable growth expectation is strong, and it is OK to superimpose the sentiment of the external market. Most of the non-ferrous metals are floating red.

China's primary aluminium production rose 1.8 per cent to 3.3 million tonnes in March from a year earlier, hitting its highest level since May last year, supported by a recovery in output and lucrative profits. However, due to the interference of the epidemic, the conversion of aluminum water in some aluminum plants was affected, and the average daily output in March was slightly lower than that in January-February.

On April 18th, SMM counted 1.039 million tons of domestic electrolytic aluminum social inventory, 24000 tons less than last Thursday's inventory. Among them, except Wuxi area is still a tired reservoir, the rest of the area is the trend of storage reduction. Guotai Junan Futures said that based on the post-epidemic demand release logic, the overall supply and demand in the second quarter showed a de-warehousing situation, superimposed overseas is still in a sustained shortage pattern (year-to-date has digested about 500000 tons of hidden inventory), so there is not much room below aluminum prices, is expected to maintain a high shock pattern.

SMM spot aluminum ingots are quoted at 21780-21820 yuan / ton, with an average price of 21800 yuan / ton, up 70 yuan / ton compared with the previous trading day. Shanghai aluminum is strong and volatile today. In the first trading session, Shanghai aluminum 05 contract reached a high of 21910 yuan / ton, and the holder quoted a strong price in the spot market in South China. Then Shanghai aluminum fell back to 21850 yuan / ton, and the shipper's shipment volume increased and the quotation went down. Today, SMM Foshan aluminum price rose 90 yuan / ton to 05 contract, which was 5 yuan / ton lower than last Friday. The spot average price was 21930 yuan / ton, up 60 yuan / ton compared with last Friday. In the second trading session, the market transaction became lighter, the downstream goods were generally received, and the market showed a small discount. The actual transaction discount to SMM Foshan aluminum price was 10 to + 30 yuan / ton, and the absolute transaction price was concentrated in 21920-21960 yuan / ton.

Shanghai Aluminum
Futures Market
closing Review

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