Shanghai aluminum market strong aluminum prices continue to rise
August 18 09:06:14, 2022
Relative to the rising trend of copper, the aluminum futures market, which has been suppressed in the previous period, has finally raised its nose. It has experienced heavy volume gains for two consecutive trading days, while the number of positions has also increased sharply. Last week, the aluminum market of the London Metal Exchange (LME) was strong. Even pulling the seven-day Yangxian, continued buying prompted aluminum prices to break through to an integer number of 1900 U.S. dollars. Last Friday it touched a nine-and-a-half year high of 1,934 U.S. dollars per ton. Li Ling of Shanghai Jinpeng Futures pointed out that last week, the international aluminum market spread news that China will impose export taxes on aluminum, confirming China’s determination to integrate the aluminum industry. Previously, the excessive expansion of production capacity of the Chinese aluminum industry in the past two years has led to serious pollution problems and consumed a lot of energy, and suppressing exports is one of the ways to reduce production. Due to anticipation that China's large amount of aluminum exports will be restrained, the morale of LME Aluminum Fund's bullishness is greatly encouraged, and changes in positions are particularly evident, and there is no sign of withdrawal of funds. Yesterday, the aluminum market in Shanghai experienced a strong trend with active transactions. After the contract opened higher in each month, it quickly increased, and then maintained high volatility. The last market rose again. As of the close, Shanghai Aluminum's monthly contract rose by 400-480 yuan, nearly 3% of the stoppage position, and far exceeded the increase in copper that day. Throughout the day, Shanghai Aluminum contracted a total of 106,000 contracts each month, holding an open interest of 80,000 contracts, an increase of 13,000 contracts. After consecutive heavy gains in recent two trading days, the 0503 contract has quickly become the main contract of Shanghai Aluminum. The contract volume was sharply enlarged on December 24th to 34,434 lots, while the open interest rate increased sharply from 11,688 lots to 25,560 lots. The volume of one-day positions increased by as much as 84%; yesterday, the contract continued to increase the volume of Masukura and closed at 16,720 yuan. The price rose by 440 points, and 68,924 lots were traded on the same day, holding an amount of 36,076 lots, an increase of 10,516 lots. Market participants pointed out that such a speedy rate increase is very rare in the history of Shanghai Aluminum trading, which shows that institutional investors have entered the market on a large scale. In addition, there are market participants pointed out that as the news of the price increase will be disclosed, investors expect that the production cost of electrolytic aluminum will continue to rise, and more electrolytic aluminum production capacity will be closed next year. This will help ease the current oversupply situation in the aluminum market in China. Since August this year, Shanghai aluminum prices have risen from more than 15,000 yuan all the way to more than 17,500 yuan, but in mid-October, after the price of aluminum fell from a high level after the decline in copper prices, has been in the doldrums, in the range of yuan a slight shock . In the same period, Shanghai copper prices have been ups and downs, prices have risen sharply again and hit a historical high of more than 30,000 yuan, and are still maintaining a turbulent market in historically high levels.
