Shanghai aluminum continues to climb

London aluminum slightly corrected on the weekend, Shanghai aluminum performed relatively strong Monday, the main 701 contract opened higher, the final closed at 21110, compared with the previous trading day up 170 yuan, 69940 hand transactions, positions increased 4754 to 73,744 hands .

In the last trading week, London's aluminum volume broke through the box which lasted for more than four months and finished along the 2,700 US dollars. It was very active. Mainly due to the strong demand for aluminum spot in the international market, the three-month cash discount has once again dropped to US$2, which is expected to break the long-term premium situation. However, the effectiveness of LME Aluminum's breakthrough of the $2,700 resistance has yet to be verified and there may be some reversals in the short term. On the one hand, the domestic market was driven by the bullish atmosphere of London Aluminum. On the other hand, due to the strong domestic consumption of domestic stocks, the supply was tight. The main contract not only continued the recent strong upward trend, but also exceeded the pressure of 21,000 yuan. A new high this month. In terms of inventory, Shanghai Aluminum inventories increased by 1,047 tons last week after the previous substantial increase of 6,135 tons, making the total inventory increase to 38,121 tons. Although the current Shanghai aluminum 100,000 hand pressure on the position is not yet visible, but if the inventory Continue to maintain the upward trend, indicating that the need for hedging of spot manufacturers is getting stronger and stronger, which will inevitably put pressure on Shanghai aluminum to sell and prevent aluminum prices from rising. Therefore, investors should keep more sober while they are long.

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