Huatai Futures: Aluminum Oxide Supply Oversupply Pressure Eases, Spot Market Transaction Prices Show Upward Trend

The pressure of oversupply caused by the continuous production restrictions at northern alumina plants has eased, and social inventory accumulation has slowed. Due to the need to ensure long-term supply and external purchases of alumina, spot market transaction prices are showing an upward trend. The raw material inventories at electrolytic aluminum plants have fallen from high levels, but their acceptance of price increases is limited. Warehouse receipt inventory pressure remains difficult to alleviate, with warehouse receipts continuing to rise to 350,000 tons. The role of warehouse pools and the support from the month-on-month price difference have prevented supply pressure in the spot market from becoming apparent, but warehouse receipt conflicts are intensifying. Going forward, attention should be paid to the pace of new capacity deployment in Guangxi. (Huatai Futures)