Aluminum: Accumulation of the Spring Festival aluminum ingot in the short-term price pressure

- Feb 23, 2018 -

Aluminum: Accumulation of the Spring Festival aluminum ingot in the short-term price pressure

Aluminum prices have been falling recently, with the exception of the technical rebound of the U.S. dollar which has caused the price of metal products to be under pressure. As a result, the global stock market led by the U.S. stock market has undergone profound shocks to the commodity market. However, there is another topic around which is that with the arrival of the Chinese New Year, domestic aluminum ingot inventory needs to enter the accumulative storage phase.

According to the current market feedback, downstream processing enterprises in east China have basically completed the preparation for the Spring Festival stocking holiday, aluminum rod processing in southern China has suspended production holidays. Railway coal transportation and transportation occupy the capacity of aluminum ingots to send capacity, some aluminum companies were forced to stop the delivery, so the apparent increase in inventories is not yet obvious, but the inventory backlog on the way, years ago, after the release of railway spring capacity, this part of the inventory is finally sent to the distribution center, Therefore, inventory of ingots during the Spring Festival is likely to focus on growth. From the holiday time, during the Spring Festival, downstream processing enterprises in east China stopped production for about 10 days and enterprises in Guangdong stopped production for 30 days. However, it is difficult for downstream processing enterprises to reach full capacity after a long period of production. Produced after the Lantern Festival, which is early March. In this way, the upstream smelting enterprises do not cut production, aluminum ingot to maintain normal supply, while the downstream demand cliffs to reduce the first quarter of aluminum ingots spot inventories will increase significantly.

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