Operation: Domestic aluminum prices are weak, but long-term trends are still bullish

Fubao Information on February 24:

news:

1. The deposit reserve ratio is lowered this time. The central bank vote is suspended for the first time this year. The upcoming suspension of open market operations in March may improve, as only 12 billion yuan was due in February, while the amount of bills due and repurchasing due in March reached 172 billion yuan and 72 billion yuan respectively. yuan.

2. The price of aluminum products in the main categories of India National Aluminum Corporation will be INR 1500 (US$30.45) per ton. The company did not modify its basic price, but offered discounts for aluminum ingots, billets and wire products. The discount was valid until February 29th. Das said that discounts do not apply to rolling products.

Operation suggestion:

Aluminum overnight fell slightly, to close at 2274 US dollars / ton, a decrease of 0.16%. At present, Lon Aluminum is still on the upward trend, and in the short term it may once again hit the resistance of the second-line US$2,300. It is recommended that investors can continue to hold more than one early period of the period, and the activists can increase their positions by bargain hunting.

It is expected that domestic aluminum prices will fluctuate slightly today. Due to the lack of financial attention, Shanghai Aluminum's current turnover is very low, and aluminum prices are weak on the upside. In the short-term, they will continue to fluctuate. The main 1205 contract is still blocked below the 20-day moving average and may temporarily focus on the top line resistance of 16,300 yuan in the short-term. If an effective breakthrough can be made, investors can aggressively continue to do more; on the contrary, it is still advisable to wait and see. In the spot market, the overall downstream consumption is still weak. As the pressure of supply continues to increase, aluminum prices may experience stagflation in the short term. However, affected by the continuous soaring of international oil prices, it is expected that the market aluminum will also rebound sharply; coupled with the gradual relaxation of the domestic monetary policy; so we are still bullish on the long-term trend of aluminum now. Therefore, it is recommended that long-term stock merchants can actively prepare for goods at the moment, while those who are currently buying are still mainly on-demand purchases. (Author: Saddle Ridge aluminum Research Group)