What's The Aluminum Material Cost Today?

Overnight, Shanghai aluminum experienced weak fluctuations. More than half of the cost of electrolytic aluminum has been reduced due to losses, but the spot market for alumina has become loose. After the cancellation of export tax rebates for aluminum, the demand outlook is under pressure, and the feedback from spot markets is poor. Shanghai Aluminum continues to operate below the Bollinger Bands with a weak trend, breaking through support and continuing the downward trend of the C-wave. We are concerned about whether it can stabilize near the annual line.

In terms of alumina, the continuous decline in overseas transactions has led to the loosening of domestic spot prices. Today, the Shanxi and Henan indices were lowered by 20 yuan and 10 yuan, respectively. The reduction in production of electrolytic aluminum has suppressed the demand outlook. However, the short-term operating capacity of alumina is difficult to increase, and the industry's destocking has not yet reversed. Attention should be paid to the previous low support, as the basis is large and there may be room for repair in the near future contracts.