On February 23, aluminum prices continued to fall, the Yangtze River spot average price fell 200 yuan/ton to 13,600 yuan/ton. After closing in the afternoon lun aluminum quickly recovered, the overall strong outside the weak, night in the copper driven continued to dive, the domestic market funds outflow.

　　Spot according to SMM, prices fell sharply, downstream enterprises purchase willingness to improve, month-end factors monthly ticket and every other month ticket price difference, overall transaction than yesterday. Downstream replenishment gradually pick up, consumption expectations or make callback depth is limited.

　　Inventory, is still a continuous increase in domestic stocks, foreign stocks continued to decline. On February 23rd SMM counted 953,000 tonnes of electrolytic aluminium inventories in China, up 75,000 tonnes from last Thursday. The previous period on February 23 saw an increase of 2,098 tonnes to 135641 tonnes, while LME aluminium stocks fell by 4,975 tonnes to 2186475 tonnes.

　　Strategy suggestion: output and inventory rise and delivery warehouse increase to facilitate inventory accumulation, the recent price pressure is greater, but the lower end of the cost support and far benefit from supply-side reform is expected to be strong, at present, aluminum prices fall to the full cost range, can consider the gradual layout of more single.

　　Risks: weak demand; continued significant inventory build-up; cost-side collapse.