Aluminum Industry: Industry reviews LME aluminum stocks high

Events: LME aluminum inventories have risen, stubbornly high, and now have more than 4 million tonnes of inventory. Shanghai Aluminum May 22 a week inventory of 173890 tons, compared to the May 15 week of 170479 tons increased by 3411 tons, for the March high value.　　The minimum value for this period is 124421 tonnes for the week of April 3.　　Comments: High-rise aluminum inventory is the biggest pressure on the production of aluminum, domestic inventory changes also show an increasing trend. According to the China Securities Daily reported May 22, there is news that Chinalco (601600) was originally in the suspended period of 800,000 tons of alumina project in Chongqing is ready to return to the construction. Prior to that, China aluminum Shandong branch in March restored 400,000 tons, Henan branch restored nearly 1 million tons of alumina production capacity.　　According to China Business Network tracking data show that March to date, the domestic alumina has begun to restart production, the total production volume of 5 million-6 million tons.　　In April, the number of alumina imports was 650000 tonnes, the chain increased by 140.7%, an increase of 16% year-on-year, and the import volume also broke the largest number of imports created last April.　　As aluminum prices rise, electrolytic aluminum enterprises will be productive, under this expectation, alumina production enterprises began to recovery is reasonable, in April, the increase in the number of alumina imports in the conditions, the Chinalco still choose to production, which will make the domestic alumina supply 10 of the abundant. At the beginning of April, 14000 yuan/ton of aluminum prices to maintain the time is not long, late April, the domestic aluminum price has been hovering around 13000 yuan/ton, now in 13000 yuan/ton below. Electrolytic aluminum enterprises starting from February to start the electrolytic tank, ready to resume production, at such a price, whether the electrolytic aluminum enterprises continue to resume production is worth considering. So the increase in alumina supply is likely to lead to lower prices.