According to the latest data on aluminum inventories released by the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE), global aluminum inventories are showing a continuous downward trend. This change not only reflects a profound change in the supply and demand pattern of the aluminum market, but may also have an important impact on the trend of aluminum prices.
According to LME data, on May 23rd, LME’s aluminum inventory reached a new high in over two years, but then opened a downward channel. As of the latest data, LME’s aluminum inventory has dropped to 684600 tons, hitting a new low in nearly seven months. This change indicates that the supply of aluminum may be decreasing, or the market demand for aluminum is increasing, leading to a continuous decline in inventory levels.
At the same time, the Shanghai aluminum inventory data released in the previous period also showed a similar trend. On the week of December 6th, Shanghai aluminum inventory continued to decline slightly, with weekly inventory decreasing by 1.5% to 224376 tons, a new low in five and a half months. As one of the largest aluminum producers and consumers in China, the changes in Shanghai’s aluminum inventory have a significant impact on the global aluminum market. This data further confirms the view that the supply and demand pattern in the aluminum market is undergoing changes.
The decline in aluminum inventory usually has a positive impact on aluminum prices. On the one hand, a decrease in supply or an increase in demand can lead to an increase in the price of aluminum. On the other hand, aluminum, as an important industrial raw material, its price fluctuations have a significant impact on downstream industries such as automobiles, construction, aerospace, and others. Therefore, changes in aluminum inventory are not only related to the stability of the aluminum market, but also to the healthy development of the entire industrial chain.
Post time: Dec-11-2024