Aluminum Spot Demand May Gradually Improve After The New Year, With Some Support Below

Overnight crude oil plummeted significantly, stimulated by news of EU sanctions against Russia, and London aluminum rose sharply in the evening, closing at $2223. Shanghai Aluminum rose sharply in late trading, closing at RMB19070. Shanghai aluminum transactions have decreased and positions have increased, and market sentiment has improved. The price ratio of Shanghai aluminum is stronger than that of London aluminum, with a year-on-year increase of 196.93% in the net import volume of raw aluminum in 2023. The macro situation is average, and short-term news stimulus is difficult to sustain and may rise and fall back. Aluminum spot demand may gradually improve after the new year, with some support below, and aluminum prices may return to volatility in the medium term. The upper pressure is RMB19200, and the lower support is RMB18000.