LME inventories fell 8725 tons to 978450 tons on Monday, LME three-month aluminum closed down 0.53% at $1681 a tonne, and Shanghai aluminum's main contract closed down 0.27% at RMB12885.
On Monday night, there was another "Black Monday" in global financial markets, with risky assets facing an across-the-board sell-off and three circuit breakers for US stocks in two weeks. Although a number of central banks followed the Fed's announcement of interest rate cuts and expanded asset purchases, financial markets "voted with their feet" and did not believe in "money printing machine" rescue measures. Global equities and commodities face the threat of systemic risk.
The inflection point of domestic epidemic and consumption gradually appears, but the epidemic shows the trend of outbreak overseas, and there is no effective prevention and control that leads to panic, which leads to the collapse of global risky assets and suppresses aluminum prices. SHFE warehouse receipts: 152000 tons in Shanghai, 63.9 tons in Wuxi, 128000 tons in Hangzhou, 210000 tons in Gongyi, 417000 tons in the South China Sea, 58000 tons in Tianjin, 12000 tons in Linyi and 15000 tons in Chongqing. The total inventory of aluminum ingots in the consumption area totaled 1.631 million tons, an increase of 38000 tons over last Thursday.
The explicit inventory of aluminum ingots continues to rise, but the inventory volume continues to pick up recently, and the downstream construction is in full swing. The rising trend of alumina prices was suspended, and as costs rose, aluminum prices fell, and some of the production capacity of electrolytic aluminum turned to a loss. Shanghai Aluminum has hit the industry cost line downward, and domestic demand is expected to rebound in the second quarter, so the price shows a certain degree of resilience.
It is expected that aluminum prices will still fluctuate at the bottom in the short term, and the reversal of the trend may not be coming for the time being.
Shanghai aluminum has a pressure of 13000 above and a support of 12500 below.