bigbaccarat| Yunnan's power surplus promotes the resumption of electrolytic aluminum production: aluminum prices within the intraday range of 20300-20800, and the mid-term accumulation exceeds 19,200 - 22,000

News summary

Supported by the increase in Yunnan's power supply and the growth of electrolytic aluminum productionbigbaccarat, aluminum intraday prices are strongbigbaccarat, it is recommended to sell imaginary put options. Social inventories fell to their lowest level in the same period in five years, supporting aluminum prices.

Newsletter text

[Yunnan Province's electrolytic aluminum production capacity is expected to release 520,000 tons] Recently, affected by the province's power surplus, the Yunnan Province government has encouraged industrial electricity and decided to release about 800,000 kilowatts of power to promote the rapid resumption of production by electrolytic aluminum enterprises in the province. It is expected to add about 520,000 tons of new production capacity.

[Electrolytic aluminum output increased year-on-year in April] In April 2024, China's aluminum output reached 351bigbaccarat5,000 tons, of which aluminum water accounts for 75bigbaccarat.36%, exceeding 73.4% in the same period last year, indicating that there is sufficient supply of aluminum water, which supports aluminum ingot production and prices.

[Aluminum ingot inventories fell to the lowest level in the same period in nearly five years] According to SMM statistics, as of May 16, the social inventory of electrolytic aluminum in five places across the country fell to 745,000 tons, a decrease of 31,000 tons from last week and fell to the lowest level in the same period in nearly five years., reflecting the steady market demand.

[Trading strategy recommends selling imaginary put options] Based on current market conditions, investors are advised to adopt the strategy of selling imaginary put options in order to benefit from market trends.

[The impact of drought in Yunnan may gradually weaken] Although Yunnan is currently facing drought problems and the resumption of production by electrolytic aluminum companies has not yet been fully implemented, the negative effect is expected to gradually decrease over time, bringing new opportunities to investors.