China's aluminum price has strong support in short term
Due to the reduction and maintenance capacity of electrolytic aluminum plants that have not been fully restored, the arrival of aluminum ingots has continued to decrease in East China, South China, and Henan in the past two weeks.
At the same time, China's Yunnan and Gansu governments might purchase and this will benefit the supply in a short period of time.
From the consumers' point of view, the construction and the pharmaceutical industry have rebounded significantly and the demand for related aluminum materials has increased. This week was the last week before May's Labour Day holiday and the demand for downstream stocks has increased significantly.
In addition, the inventory of electrolytic aluminum dropped further by 76,000 tons to around 1.28 million tons in the past week. The destocking cycle remained stable and had strong support for the price.
On the whole, the improvement in supply and demand stimulated the aluminum price to move up. It still needed time to observe the actual consumption situation in the future and other storage news in the market.
