Aluminium futures continue to decline, and the market trading atmosphere remains sluggish

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In morning trading, the operating centre of the SHFE aluminium 2606 contract was lower than the same period on the previous trading day. Affected by low aluminium prices, some sellers continued to hold back from selling. Downstream just-in-time procurement demand, combined with bearish sentiment, kept overall market procurement sentiment sluggish. Mainstream transactions were at a premium of RMB 10 per tonne to RMB 20 per tonne against the SHFE aluminium July contract. The east China market shipment sentiment index was 2.83 today, down 0.05 D-o-D; the procurement sentiment index was 2.73, down 0.04 D-o-D.

The central China market transaction atmosphere remained sluggish today. The futures aluminium market continued its downward trend, fostering significant price drop fears among downstream processing enterprises, with only some firms not locked into long-term contracts making just-in-time procurement. With the excessive drop in aluminium prices, suppliers' willingness to sell also remained low, and their willingness to hold prices firm was weak. The actual transaction price range in central China ultimately centred around a discount of RMB 30-50 per tonne against the SHFE aluminium July contract. The central China market shipment sentiment index was 2.86 today, down 0.01 D-o-D; the procurement sentiment index was 2.10, down 0.02 D-o-D.

On the inventory front, aluminium ingot inventories in major consumption regions fell by 1,550 tonnes D-o-D today, with destocking mainly occurring in Guangdong and Wuxi.

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.