March 28, 2023 Aluminum Morning Review

  On the macro level, the Federal Reserve raised interest rates by 25 basis points as scheduled. In his speech after the meeting, Powell stated that tightening credit conditions may be equivalent to raising interest rates, and removed the wording that continued interest rate hikes may be appropriate, showing the market the possibility that the Federal Reserve's current interest rate hike cycle may be nearing its end. The macro pressure has slightly eased. Fundamentally, domestic alumina profits have been restored and prices have remained stable, while overseas alumina production has not recovered; Smooth operation of electrolytic aluminum; On the demand side, last week, the operating rate of domestic leading aluminum downstream processing enterprises continued to increase slightly by 0.2 percentage points compared to the previous week. The operating rate of the aluminum profile and cable sectors in the segmented sectors still maintained good performance, with large photovoltaic order factories fully producing. The increase in electricity grid pick-up volume drove the production of the cable industry, and the overall operating data still maintained growth. In terms of inventory, both domestically and internationally are at a low level, and social inventory has shifted to destocking. In terms of spot sales, the premium of South China aluminum ingots continued to expand today, and transactions were relatively positive. In terms of operation, it is recommended that the Shanghai Aluminum AL2305 contract be mainly traded in short-term wide range fluctuations, and pay attention to the pace of operation and risk control.。