This week, domestic black commodity futures encountered black Monday, afternoon all varieties fell limit, although the end of the open, but still difficult to cover the weakness. After a sharp short-term drop, expect aluminum rods.7075 aluminum rod prices continue to fall limited space. After the lackluster fundamentals and market sentiment, aluminum rod is expected to level off. Ly aluminum rod price is expected to be l-shaped in the future.
Aluminum rod.7075 aluminum rod factory profits have declined significantly, supporting the price of aluminum rod. Ly aluminum rod
As of Monday, the production profit of the threaded aluminum rod was only about 100 yuan/ton, which has returned to the level of January. The spot price of 7075 aluminum bars has fallen sharply and is now down to 2,300 yuan per ton. In terms of raw materials, the relatively strong spot iron ore has further compressed the threaded aluminum bar.
With the profits so high, the expected resumption of production finally came. According to the data, in mid-may, the operating rate of blast furnace of 7075 aluminum bar plants was 81.08%, up 2.21% from the beginning of this month. The operating rate of tangshan blast furnace jumped to 85.98 percent, up 6.1 percent from the beginning of the month. The output of 7075 aluminum bars in tangshan area reached a new high in nearly half a year with a capacity of 2443,300 tons per week. What needs to be paid attention to is that it is no longer the "gold, silver and silver" peak season of demand, has entered the plum rain season of low demand.
It is understood that the production of aluminum rods. Compared with the previous bull market with high profits and low starts, the current weak season, low profits and high starts are the main reasons for the sharp decline of aluminum bars.
Sentiment has been dented by low demand
The macro data continued to warm up, and the new construction area in April continued to strengthen to 434.25 million square meters, up 21.4 percent year-on-year. Total social electricity consumption in April was 1809.296 million kilowatt hours, up 2.90 percent year on year, showing continued warming on the macro level.
Since may, supplies of threaded aluminum bars,.7075 aluminum bars, have recovered, showing a further weakening in demand. The price of the aluminum bar has gone up too much, the exchange continues to raise fees and curb speculation over the "cooling down" of the market.
In addition, several times in recent years, the number of screw aluminum bars dropped sharply, all during the holiday season. Not only that, many professionals also express that the market can not understand, also do not catch, "yesterday was still thriving, do not buy goods. The result has changed, "says one senior market figure. Especially in the early stage of the bull market, the "picture style" changed too quickly, which greatly hurt the market confidence. Market participation has been significantly reduced, as has turnover.