HK Stock Market Move | Aluminum stocks continue to rise, JP Morgan says global aluminum inventory will only last 9 days, aluminum prices are expected to exceed $4000 in the coming months.

Aluminum stocks continued to rise, as of the time of publication, Aluminum Corporation Of China (02600) rose by 4.37% to 13.13 Hong Kong dollars; RUSAL (00486) rose by 2.61% to 4.33 Hong Kong dollars; CHINAHONGQIAO (01378) rose by 2.56% to 39.22 Hong Kong dollars; CHUANGXIN IND (02788) rose by 2.27% to 31.6 Hong Kong dollars. On the news front, the US-Iran conflict has entered a period of negotiation and easing tensions, but with the blockade of the Hormuz Strait, the supply of raw materials in the Middle East aluminum industry chain remains restricted, and production lines that have been shut down are also facing difficulties in resuming operations. Qatar Aluminum and Bahrain Aluminum have substantially reduced production, and EGA in the UAE and Bahrain Aluminum have been attacked, damaging their production facilities. JPMorgan released a research report stating that global visible aluminum inventories are only 1.9 million tons, covering only 9 days of demand. By contrast, at the beginning of 2021, global aluminum inventories could cover 20 days of demand. JP Morgan predicts that LME aluminum prices will break through $4,000 per ton in the coming months, with the expectation of reaching $3,800 per ton in the second quarter and an annual average of $3,500 per ton. Currently, LME aluminum prices are hovering around $3,500 per ton.