LME inventories fell 10125 tons to 1082150 tons on Friday, while aluminum for three-month delivery closed up 0.65% at $1698.5 a tonne. Shanghai Aluminum's weekly inventory rose 29452 tons to 439087 tons, while Shanghai Aluminum's main contract closed down 2.45% at RMB13160.
Market panic caused by the epidemic continued to hit global financial markets, with stock markets hit hard and commodity prices as a whole under pressure. Shanghai Aluminum continued to decline last week, Friday market panic broke out, aluminum prices fell sharply close to the 131st line, the 131st line for the industry cost line, there is still support. Aluminum downstream factories have resumed work one after another, but the operating rate is still generally low, and it is difficult for consumption to return to normal level in the short term. Aluminum ingot social inventory superimposed aluminum factory warehouse inventory, aluminum bar inventory and in-transit inventory has reached at least more than 2.5 million tons, the pressure to go to the warehouse is great.
After a sharp fall in the market on Friday, intra-day aluminum prices may have been repaired, but overseas outbreaks have crushed industrial products, global demand expectations have been thwarted, and the pressure of short-term high inventories is still prominent. Aluminum prices are expected to be mainly weak under both macro and industrial pressures.