The aluminum inventory data released by the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) both show a downward trend in inventory, which further exacerbates market concerns about aluminum supply.

 
LME data shows that on May 23 last year, LME’s aluminum inventory reached a new high in over two years, which may reflect the relatively abundant supply or weak demand for aluminum in the market at that time. Subsequently, inventory entered a relatively smooth downward trend. As of January 9th, LME aluminum inventory has dropped to an eight month low of 619275 tons. This change indicates that the market demand for aluminum may remain strong during this period, or there may be supply side issues leading to rapid inventory depletion. Despite a slight rebound in LME aluminum inventory after reaching a new low, the latest inventory level remains at a low of 621875 tons.

At the same time, the aluminum inventory data released in the previous period also showed a similar downward trend. During the week of January 10th, Shanghai aluminum inventory continued to decline, with weekly inventory decreasing by 5.73% to 182168 tons, reaching a new low in over ten months. This data further confirms the current situation of tight supply in the aluminum market.

 
The decline in global aluminum inventory may be influenced by multiple factors. On the one hand, with the recovery of the global economy, the demand for aluminum in major consumer sectors such as manufacturing and construction has rebounded, leading to an increase in the market demand for aluminum. On the other hand, the production and supply of aluminum may be limited by factors such as raw material shortages, rising production costs, and adjustments to environmental policies, all of which may affect the supply capacity of aluminum.

 
The change in inventory is an important reflection of the market supply and demand relationship. When inventory decreases, it usually means that market demand exceeds supply, which may lead to an increase in aluminum prices. Although there is some uncertainty regarding the future trend of the aluminum market, based on current data and trends, the supply of aluminum may continue to tighten. This will have a significant impact on the price and market demand of aluminum.