Aluminum ingot stocks rise in Xinjiang to organize small-scale motor transport

On November 2nd, Shanghai Aluminum experienced several consecutive contracts on the daily limit after several consecutive days of attacks. The market was once panicked, and the spot market price was confusing. The willingness of shipments of goods was strengthened, but the downstream was cautious. In the context of no macro change and no significant changes in the spot market, this period of change in prices is more from changes in market sentiment and risk appetite, and the continuous soaring in the early period has intensified the callback efforts.

Judging from the transportation problems, the “unbalanced production and sales regions in the domestic aluminum market” continues to increase in logistics costs and wagon tensions, especially in the northwestern aluminum production base represented by Xinjiang. Since October, there has been a serious shortage of train capacity, and some coal, The transportation of agricultural products and other materials is still ahead of the transportation of aluminum ingots. Due to the continuous rise in aluminum prices, the willingness of aluminum companies to realize inventory intensification has become increasingly strong. Individual companies in Xinjiang have begun to organize automobile shipments. According to institutional research, since November, about 1,000 tons of aluminum ingot cars have been sent to Henan Gongyi District every day, and the freight rate is 600-700 yuan/ton, which is 300 yuan/ton more than usual, and the period of transportation is about 3-4 days. However, it is still to be observed whether the automobile transportation will be affected by the weather. The current situation is that it is expected that the dilemma of product shipments from the aluminum smelter and processing enterprise in the Xinjiang region will improve, but that the railway wagons will be strained before the end of November. The Bureau will continue.

Looking at the inventory of aluminum ingots, the arrival of domestic aluminum ingot warehouses this week has increased slightly, while the lower reaches of the market has led to a reduction in the number of warehouses. It is understood that as of November 2nd, the total spot inventory of domestic aluminum ingots has increased to 255,000 tons, an increase of 10,000 tons compared with October 31, with the main warehouses in Wuxi, Shanghai and Gongyi areas in East China increasing. The main sources of supply are from Ningxia, Qinghai, Gansu, and Shandong, where the proportion is still relatively small in Xinjiang, while the aluminum spot inventory in Foshan, the main consumer destination in southern China, continues to decline slightly.

From the downstream procurement perspective, due to the domestic aluminum prices rose too fast in October, in addition to the domestic aluminum orders decreased significantly, the export orders also have a serious impact, the downstream stocking enthusiasm has been severely frustrated, according to institutional research shows that the main domestic aluminum ingot exports in October The inventory volume decreased by 10.5% from the previous quarter and decreased by 31.4% year-on-year. (Gu Fengda)