LME inventories fell 9975 tons to 1040775 tons on Thursday, while LME three-month aluminum closed down 0.35% at $1717/tonne, while Shanghai aluminum's main contract closed up 0.15% at RMB13245.
Global financial markets have become more volatile, with risk aversion weighing on commodity prices. The inflection point of domestic epidemic and consumption gradually appears, but the epidemic shows the trend of outbreak overseas, which constitutes invisible pressure and the low price of aluminum fluctuates. Domestic aluminum downstream factories have resumed work one after another, but the operating rate is still generally low, consumption is difficult to return to normal level in the short term, and overseas consumption will also be frustrated when the epidemic intensifies.
(including SHFE warehouse receipts): 131000 tons in Shanghai, 56.2 tons in Wuxi, 122000 tons in Hangzhou, 215000 tons in Gongyi, 374000 tons in the South China Sea, 58000 tons in Tianjin, 12000 tons in Linyi and 11000 tons in Chongqing. The total inventory of aluminum ingots in the consumption area totaled 1.488 million tons, an increase of 103000 tons over last Thursday.
The total inventory of superimposed aluminum plant warehouse, aluminum bar inventory and on-the-way inventory has exceeded 2.5 million tons, so there is a great pressure to go to the warehouse.
Under the double pressure of macro and industry, the upward space of aluminum price is insufficient, the rebound space is limited, and the pressure near the top 13500 is strong, which may continue the weak shock and explore the low support before going down again.
The upper pressure of Shanghai Aluminum is 13500 and the lower support is 13070.