It was reported that the stock market of aluminum ingot supply was tight this week. Overall, supply exceeded demand and aluminum ingot discount gradually turned into premium. The direct reason was suppliers reduced sales and many traders this week to reduce the shipment or even do not ship, so the market circulation of aluminum ingots reduced accordingly.
On the other hand, after the implementation of the tax reduction policy on April 1st, the produced order have an overall advantage while the stock was obviously in a weak position due to the reduction of tax difference, so the situation of strong futures and weak stock was formed.
It might be more appropriate to buy stock and sell futures. The north region in China, such as Liaoning, had tight stock causing local large aluminum processing enterprises had expansion plan, and they took more physical resources and reduce the amount of stock flow to the market.
Chinese aluminium ingot stock in tight supply recently
5 Apr 2019 16:27 reported by Elena
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