Aluminium Price Rebound Is Expected

Shanghai aluminium price reached new low this week. Stagnated downstream consumption and increasing inventory largely affected aluminium price.

From the view of position, main buyers increased holding this week. Qingtongxia, China International and Chalco International Trade increased the most. China Merchants Futures, China International and Shanghai CIFCO Futures focused on increasing short selling, main shorts are a lot more than longs. These factors lead to a low aluminium price. The new low aluminium on Thursday stimulated Qingtongxia and Chalco International Trade to increase holding.

Until Feb 21, Shanghai aluminium main increased 283. In conclusion, low price lead to more buys, Shanghai aluminium price is expected to grow.