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During morning trading, the centre of SHFE aluminium 2606 contract was higher than the same period of the previous trading day. Impacted by the rise in aluminium prices and yesterday's restocking, overall procurement sentiment weakened today.
{alcircleadd}However, supported by sellers' willingness to hold prices firm at recent lows, transaction and offer prices moved higher. Mainstream transactions were at a discount of RMB -10~0 per tonne against the SHFE aluminium July contract.
In east China today, the selling sentiment index was 3.14, up 0.25 from the previous day; procurement sentiment index was 3.00, down 0.16 from the previous day. Futures aluminium prices fell for consecutive days, leaving trading sentiment in central China sluggish, with strong bearish sentiment and limited stockpiling willingness on Friday.
Downstream processing enterprises preferred warrant or long-term contract transactions, leading to large inflows of warrants and weak inclination among suppliers to hold prices firm, pushing transaction prices continuously lower.
Eventually, the actual transaction price range in central China was around a discount of RMB 10-40 per tonne against the SHFE aluminium July contract. Today's central China selling sentiment index was 2.90, up 0.01 from the previous day; procurement sentiment index was 2.14, flat from the previous day. On the inventory front, aluminium ingot inventories in major consumption regions fell 19,000 tonnes W-o-W today, with destocking observed in all three regions.
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.
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