Lixia is the seventh solar term in the 24 solar terms of the lunar calendar, and the first solar term in summer, which means the formal beginning of midsummer season and the solar season when the sun reaches 45 degrees of the Yellow Meridian. Dou refers to the southeastern part of the country, where everything grows up, so it is also known as Lixia.
It should be getting warmer and warmer when Lixia comes,however,today the weather went extremely down on today.El Nino Y La Nina Meteorological result is bringing the world weather to be strange.
Today is also a unstable day in financial market.The three major stock indexes fell unilaterally in China, and the afternoon decline continued to expand. As of 13:22, the Shanghai Stock Exchange Index closed at 2897.85 points, down 5.86%, Shenzhen Stock Exchange Index and GEM Index fell more than 7%, and nearly 500 stocks in the two cities fell to a halt.
As to aluminum market.Macroscopically, Trump threatens Sino-US trade negotiations, which are facing greater uncertainty and financial market shocks. Although the PMI of Caixin manufacturing industry is higher than the boom and bust line, it does not meet expectations, ending the rebound brought by the Spring Festival effect.
Fundamentally, LME aluminium inventory has continued to recover from 26 days to 1.25 million tons, SMM aluminium ingot inventory 14.422 million tons on 5 days, holiday inventory has not increased but decreased by 28,000 tons; China Aluminum China Resources has restarted 125,000 tons of production capacity, electrolytic aluminium capacity has resumed production and increased again; electricity prices in Qinghai and other local power grids have been lowered, and the industry price difference has narrowed.
Logic: Further easing of policy expectations, slowing down the expansion of manufacturing activities, market sentiment returned to the basic level; domestic inventory remained high-speed depot, LME warehousing rules were revised, inventory increased substantially, internal and external strength was distinct; domestic capacity rebounded significantly, depot expectations slowed down, short-term support for aluminum prices was strong, maintaining high volatility.
Contact Person: Mr. Tracy