The U.S. dollar strengthened, and aluminum on the London Metal Exchange plummeted 3.34% the next week; the fundamentals of aluminum in the Chinese market remained weak, downstream demand continued to slump, and the difficulty of shipping increased, while the inventory of aluminum ingots was still under pressure from accumulating warehouses. Chinese aluminum price is expect to fall on August 15, 2022.
Aluminium Futures Market
Affected by the strengthening of the US dollar and the poor performance of China's credit data in July, the metal in the outer disk weakened across the board.
LME aluminum showed a weak trend in last week. The latest closing price was 2,433 US dollars / ton, which closed down 84 US dollars, or 3.34%, and the trading volume increased by 13,896 lots. 843 lots, and the open interest of 614,063 lots increased by 12,321 lots.
Shanghai aluminum ran weakly on Friday night, and the latest closing price of the main monthly 2209 contract was 18,280 yuan / ton, down 390 yuan, or 2.09%.
The London Metal Exchange (LME) on August 12 reported 277,225 tons of aluminum in the latest inventory, a decrease of 1,900 tons or 0.68% from the previous trading day.
On August 12, the spot aluminum price of Changjiang comprehensive spot AOO aluminum ingot was reported at 18,665 yuan/ton, down 135 yuan; the price of Chinalco East AOO aluminum ingot was reported at 18,670 yuan/ton, down 120 yuan.
China's aluminum fundamentals are still weak, downstream demand continues to be sluggish, and it is more difficult to ship out, while aluminum ingot inventories are still facing accumulating pressure. The room for price growth is limited. Due to weak expectations for market demand and the lack of strong performance in the recovery of downstream orders, aluminum prices are still expected to weaken, and aluminum may fall today.