Holders in East China refuse to budge on prices and hold back sales, spot discounts narrow

SHFE aluminium bottomed out in the morning session. In the first trading period, SHFE aluminium fluctuated downward, falling from around RMB 20,250 per tonne to about RMB 20,200 per tonne. In the second trading period, it rebounded to around RMB 20,280 per tonne. 

In East China, the absolute high price fluctuated at its highest. Traders refused to budge on prices and were reluctant to sell. Around market opening, quotations were at parity with the SMM average price, with poor sales enthusiasm. Later, actual transactions were at premiums of RMB 10-20 per tonne against the SMM average price.

Today, the East China market sales sentiment index was 3.03, up 0.11 W-o-W; the purchase sentiment index was 3.11, up 0.24 W-o-W. Today, SMM A00 aluminium was quoted at RMB 21,200 per tonne, up RMB 30 per tonne from the previous trading day, at a discount of about RMB 10 per tonne against the 2511 contract, up RMB 20 per tonne from the previous trading day.

In central China, before market opening, sales sentiment was high due to the night session rally. After opening, prices pulled back sharply, and suppliers slowed sales. High aluminium prices weakened downstream purchase willingness. Final transaction prices were around parity to a discount of RMB 10 per tonne against the central China price. Today, the central China market sales sentiment index was 2.86, down 0.01 W-o-W; the purchase sentiment index was 2.80, down 0.01 W-o-W.

SMM central China A00 aluminium was recorded at RMB 21,060 per tonne, up RMB 20 per tonne from the previous trading day, at a discount of RMB 150 per tonne against the November contract, up RMB 10 per tonne from the previous trading day. The Henan-Shanghai price spread was -RMB 140 per tonne, widening RMB 10 per tonne from the previous trading day.

On the inventory side, the national aluminium ingot inventory totalled 619,000 tonnes on Thursday, destocking 7,000 tonnes W-o-W from last Monday. In the short term, high aluminium prices dampened downstream cargo pick-up enthusiasm. Spot transactions were expected to remain mainly at discounts.

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.