Aluminium alloy futures edge higher, spot diverges; watch pace of import window opening

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Futures side: The Aluminium Alloy 2609 contract opened today at RMB 22,865 per tonne, with an intraday high of RMB 23,060 per tonne and a low of RMB 22,825 per tonne, closing at midday at RMB 23,005 per tonne, up RMB 180 per tonne, or 0.79 per cent. In early trading, prices edged down to the intraday low before bulls stepped in to push them higher, consistently holding above the intraday average price line. During the session, prices repeatedly surged to new intraday highs, with bullish sentiment remaining strong. Short-term bullish momentum recovered, and supported by previous support levels, prices consolidated and trended higher. In the short term, resistance still lies overhead.

Spot side: Today, the willingness to adjust ADC12 prices diverged: rising costs prompted some enterprises to try to follow the increase, while others kept quotes stable for now. The traditional consumption off-season atmosphere is increasingly evident, and downstream orders and transactions remain persistently weak, posing certain resistance to price increases. Given insufficient demand support, enterprises are mainly observing the market and maintaining stable prices while selling. In the short term, spot ADC12 prices are expected to continue showing a pattern of cost support coexisting with demand pressure, mainly moving sideways.

Import side, overseas ADC12 offers were in the range of USD 3,100–USD 3,200 per tonne, and the price spread between Chinese and overseas markets continued to narrow. If overseas offers continue to pull back, the import profit window is expected to gradually open, at which point increased imports will provide some supplement to the tight domestic supply.

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.