East China Gongyi market weakened, premiums under pressure

During the morning session, the SHFE aluminium 2606 contract fluctuated upward, with the overall price centre rising compared to the previous trading day. Affected by higher aluminium prices, downstream purchase sentiment weakened significantly, and selling sentiment was notably higher than purchase sentiment today.

Mainstream spot quotes in the market were at SMMA00 RMB minus 10 per tonne to the average price. Today, the east China market shipment sentiment index was 3.01, up 0.07 M-o-M; the purchase sentiment index was 2.83, down 0.08 M-o-M.

Entering the June off-season, downstream processing enterprises in central China saw weak orders. Combined with rising aluminium prices, purchase willingness was low. However, suppliers tended to sell in large volumes when aluminium prices rebounded, with poor willingness to hold prices firm. Overall market transaction atmosphere remained sluggish, and quotes continued to decline.

The actual transaction price range in the central China market ultimately settled at a discount of RMB 190-210 per tonne against the SHFE aluminium 06 contract. Today, the central China market shipment sentiment index was 2.88, up 0.03 M-o-M; the purchase sentiment index was 2.18, down 0.01 M-o-M. Inventory side, aluminium ingot inventory in major consumption areas rose 0.6 M-o-M today, with the inventory buildup mainly originating from Wuxi and Gongyi.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.