Today, SHFE aluminium futures fluctuated in the morning session. The impact of yesterday's Sino-US tariff developments was not evident in the futures market. The fundamental factors were mixed, leading to overall market volatility.
In terms of spot market performance, the spot market in east China weakened, with market participants focusing on selling. High premiums continued to pull back. Early in the morning, transactions were concluded at a discount of RMB 10 per tonne to the SMM average price, and later, most transactions were also concluded at this level. Today, SMM A00 aluminium ingot prices were reported at RMB 20,230 per tonne, down RMB 20 per tonne from the previous trading day, with a premium of RMB 80 per tonne against the June contract, narrowing by RMB 10 per tonne from the previous trading day.
In the central China market, transactions were concluded at the SMM central China average price today. However, downstream feedback indicates weakening demand, with production cuts occurring sequentially. Against the backdrop of weak supply and demand, premiums are expected to weaken further. SMM A00 aluminum in central China was recorded at RMB 20,170 per tonne against the SHFE aluminum 2506 contract, down RMB 20 per tonne from the previous trading day. The price spread between central China and east China was RMB 60 per tonne, unchanged from the previous trading day, with a premium of RMB 20 per tonne against the 2506 contract.
Regarding inventory, according to SMM's domestic aluminum ingot inventory data, the domestic aluminum ingot inventory across three regions stood at 371,000 tonnes on June 6, down 10,000 tonnes from yesterday. In the short term, the lower arrival of goods is conducive to maintaining premiums. However, downstream acceptance of high premiums has decreased, coupled with weakening demand during the off-season. Against the backdrop of weak supply and demand, holders are actively selling, and premiums and discounts are expected to pull back mainly.
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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