The latest data from the London Metal Exchange (LME) shows that aluminum inventories in London continue to be in a downward trend. As of June 20, the inventory has dropped to 407,875 tons, which has once again set a new low in more than 21 years. It is understood that the accelerated decline of aluminum inventories in London since the beginning of this year has a lot to do with the EU sanctions against Russia. The sanctions have led to the obstruction of shipments to European ports, so that aluminum produced in Russia has to be shipped to Asia, which is manifested as the transfer of inventories from Europe to Asia. At the same time, due to various factors such as tight transportation capacity and rising freight costs, the inventory in transit has increased and the dominant inventory has decreased.
In terms of Shanghai futures aluminum inventory, the latest inventory has dropped to 267,337 tons as of last Friday, which has been declining for 6 consecutive weeks, and has set a new low in the past 5 months.
This year's electrolytic aluminum inventory reached a high point in early March, and then started a slow downward trend. Affected by the epidemic, downstream demand was weak. The decline was not obvious from mid-March to May. Starting from mid-May, with the gradual resumption of work and production by enterprises As well as the impact of the warehouse incident, the decline of electrolytic aluminum accelerated. As of June 20, the latest inventory data showed that the electrolytic aluminum inventory in 8 mainstream consumption areas across the country had dropped to 760,000 tons, a drop of 208,000 tons in just one month. A drop of 21.6%.
