On Friday night, the lme market was weakened by the dollar, which attracted some consumer buying and pushed up aluminum prices. At the end of the day, aluminum closed at $2,647, up $32 from the previous session. Shanghai Alcoa today rose under the lead of aluminium and spot aluminum prices. The main a0608 contract opened at 21210 yuan/ton, with a higher price hitting 21,450 yuan/ton, a lower price reaching 21,020 yuan/ton, and a late rise of 290 yuan/ton at 21,370 yuan/ton. Volume 68080 hand positions 66216 hands.
Due to the fact that spot stocks are generally insignificant, the reluctant sellers have a more serious mentality. The spot performance of aluminum ingots in Guangdong has been strong. Spot premiums have reached 500 yuan/ton. Strong spot prices have led to higher futures prices. However, we think this is only a short-term spot imbalance. With the arrival of aluminum ingots and aluminum scrap in June and July, the tension will weaken. At the same time, the price of alumina has started to slow, and the recent Nalco bid price is lower than the previous tender, which will further weaken the rising base of the aluminum market. From a technical point of view, Shanghai Aluminum’s recent gains in both open interest and trading volume have shrunk, and lme aluminum prices have not yet returned to the previous consolidation zone. The downward trend in aluminum prices still exists. Therefore, operation should not blindly chase high, Shanghai Aluminum August contract at 21,500 yuan / ton line may consider short selling.