Aluminum price centre shifted upward, overall market procurement sentiment declined

During the morning session, SHFE aluminium 2604 fluctuated downward, with the price centre rising significantly from the previous day. Influenced by higher aluminium prices, overall willingness to sell in the market was high, while buying sentiment was suppressed by elevated prices. Circulating supply in the market was relatively sufficient. Market transactions declined after the opening, with mainstream transactions concentrated around SMM A00 aluminium at down RMB 20 per tonne to down RMB 10 per tonne. The East China market shipment sentiment index was 3.58 today, up 0.17 MoM; the procurement sentiment index was 2.94, down 0.07 MoM.

Affected by the ongoing escalation of the US-Iran conflict, aluminium futures prices surged sharply from last night's session through today, and overall buying sentiment in the central China market was low. With aluminium prices at elevated levels, downstream processing enterprises mostly adopted a wait-and-see approach, with small factories suspending purchases and only a few large factories maintaining normal procurement, while suppliers showed a strong willingness to sell at high prices.

Ultimately, actual transactions in the central China market were poor today, with prices mainly ranging from parity to a discount of 50 yuan against the central China price. The central China market shipment sentiment index was 2.81 today, up 0.04 MoM; the buying sentiment index was 2.36, down 0.04 MoM.

Inventory side, aluminium ingot inventory in major consumption regions increased by 500 tonne MoM today, with the inventory buildup mainly driven by 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