The main driving force of strong operation

　　In terms of current inventory, the domestic social pool totals 266,906 tons, a decrease of 15,797 tons from the previous week. LME inventory was 880,975 tons, an increase of 119,025 tons from the previous trading day.From a fundamental point of view, the internal and external reasons for the strong aluminum price are still there.

　　There are three internal reasons for the recent strong performance of aluminum prices:

　　1. The circulation of aluminum ingots in some areas of Guangxi was blocked due to public health events, and the inventory of aluminum ingots in Baise basically changed to the inventory in the factory area; and Baise City is the largest aluminum production capacity city in Guangxi. According to data, the production capacity of electrolytic aluminum in Guangxi is about 2.82 million tons. Among them, Baise’s electrolytic aluminum has a built capacity of 2.32 million tons, accounting for more than 80% of Guangxi’s total production capacity, while Guangxi’s electrolytic aluminum operating rate has been insufficient due to power and other reasons. As of the end of January, Guangxi’s electrolytic aluminum operating capacity was about 1.98 million tons, of which Baise The operating capacity of electrolytic aluminum is 1.73 million tons, accounting for 4%-5% of the national operating capacity.

　　2. On the cost side, alumina prices rose slightly. Affected by the Winter Olympics, the operating capacity of alumina in Shanxi, Shandong and Henan has been reduced to about 15 million, with an average daily production reduction of 40,000 tons. After the festival, the inventory has been digested more, and the demand for replenishment of aluminum plants is large.

　　3. In terms of inventory data, the social inventory data for the Spring Festival is good. As of the 7th, the domestic social inventory of aluminum ingots is 866,000 tons, which is not much compared with the pre-holiday accumulation. In addition, there are more export orders from downstream enterprises recently, and the market sentiment rise.

　　The external factors are mainly concentrated in the production reduction problem caused by the European energy problems in the early stage.

　　Market outlook is expected

　　The fundamentals of aluminum ingots have improved, and demand is expected to rise. After the quarter, aluminum prices rose sharply. After breaking through the 23,000 point, the long-short game intensified, the downstream wait-and-see mood was strong, and the amount of goods purchased fell sharply.