Shanghai aluminum stable

Shanghai Aluminum ** oscillated up and oscillated on the 27th, with the main 1303 contract closing at 15,345 yuan/ton, up 40 yuan. The overnight LME market was closed. Today, Shanghai Alcoa edged higher by surrounding highs. Fundamentally, the data shows that Chinese companies have a strong profit, while the US fiscal cliff is getting closer and the market uncertainty is increasing. The stability of domestic spot prices maintains limited cooperation with the rally. Shanghai Aluminum is expected to maintain its volatility in the range of RMB15,100-15,600/tonne in the short term.

The National Bureau of Statistics of China announced on Thursday that China’s industrial enterprises above designated size achieved a profit of RMB 638.5 billion in November, an increase of 22.8% from the same period of last year, and the increase continued to rise from October. According to the Bureau of Statistics, profits from industrial enterprises above designated size from January to November totaled 4,666.5 billion yuan, a year-on-year increase of 3%. Continuation of cumulative profits for the first 1-10 months has seen positive growth for the first time since this year.

In the United States, in the short term, the market is still affected by the US fiscal cliff, and the likelihood of the United States reaching a budget agreement is getting smaller and smaller. At present, there are five days before the deadline for the 600 billion US dollars tax increase and reduction plan to start automatically. The Diet will resume negotiations on December 27 and wait for the clearing of the US fiscal cliff after the holiday.

In terms of inventory, aluminum stocks at home and abroad are all maintained at high levels, and the spot price of aluminum prices is to maintain the annual weakness. As of last weekend (December 21), the London Metal Exchange (LME) increased its aluminum inventories by 5.3% to 5.32 million tons this year, setting a record for the LME. With high inventory levels and sluggish demand, Barclays even advised investors to sell aluminum contracts, while Morgan Stanley researched that aluminum is the most bleak prospect among all commodities. Aluminum ranks at the bottom of the 21 commodities it tracks.