Aluminium Early Review
[Market Analysis]:
Shanghai Aluminum fluctuated slightly at a high level last night. The support for the continuous rise of aluminum prices is divided into three aspects: supply, cost, and news. In terms of supply: domestic Baise has not resumed production of electrolytic aluminum due to the continued epidemic, and the resumption of production in the northern region due to the Winter Olympics is less than expected. On the cost side, alumina prices also rose due to the lower-than-expected shutdown and resumption of production in Baise.
News: The game between Russia and Ukraine escalates. If the war breaks out, Russia, as an important exporter of energy and aluminum materials in Europe, will surge aluminum prices in London and affect Shanghai aluminum. To sum up, the limited supply and the impact of the outbreak of the “war” between Russia and Ukraine will still maintain a high level of Shanghai aluminum, and there is currently no falling factor insight.
[Investment Strategy]:
Trading strategy: You can continue to consider adopting a double-selling strategy, and the upper and lower range can be moved from 20500-21500 to 21500-24000.
