China's manufacturing GDP data continued to decline, as well as the strong dollar and other factors suppressed!
Metal commodities will continue to be weak. Among the seven varieties, aluminum products are generally considered to be short for a long time.
So, what is the basic situation of the aluminum ingot Market?
Recent news reports: the Chinese government exempts tariffs on aluminum ingots and their alloy products. Why should we cancel the tariff on aluminum alloy related products now?
From the analysis of market information at the entrance, China's aluminum ingot export is in a loss state. Because in recent years, overseas producers have begun to cut back on raw materials needed for production,
The Middle East has also begun to reduce the supply of corresponding aluminum materials. At the same time, overseas markets such as Europe, the United States and Brazil are looking for imports to make up for their own demand.
The productivity of China's aluminum ingots is constantly improving. Theoretically speaking, the only way out for China's aluminum ingot products to flow into overseas markets is also in line with the current industrial structure.
According to the overseas demand for China's aluminum ingot Market, European and American countries have high requirements on aluminum ingot standards, which are mainly used for processing aluminum products,
This is quite different from the primary aluminum ingots exported by China.In a word, China's aluminum ingot products need to be improved in process and other aspects to meet the needs of foreign markets.
The government can either maintain tariffs and form an internal adjustment structure in China, or eliminate tariffs and allow surplus production to flow to the international market. Obviously, the policy announced last week is the first step to guide domestic production into the international market.
To sum up, we are not pessimistic about the future price of aluminum ingots. In recent years, LME aluminum inventory has been close to the historical low level. Although it still needs to keep the overall consistency with the trend of other basic metals in the direction, we believe that the aluminum price is at a relatively low level after considering the factors such as price, inventory and economic data.