Buying sentiment of some downstream enterprises slightly recovered ahead of Labour Day holiday

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SHFE aluminium 2605 fluctuated upward in the morning session. End-users mainly maintained just-in-time procurement, with some buyers stockpiling ahead of the holiday. Mainstream transactions were concentrated around the SMM A00 aluminium average price to +RMB 10 per tonne. The shipments sentiment index in east China was 3.36 April 22, flat M-o-M; the purchasing sentiment index was 3.21, up 0.05 M-o-M.

SHFE aluminium had declined for consecutive days recently. Premiums in central China showed an upward trend, and buying sentiment among downstream processing enterprises recovered slightly. As the Labour Day holiday approached, some traders began stockpiling ahead of schedule to avoid sharp pre-holiday price increases, and overall trading volume in the market increased. Additionally, affected by invoicing limits, cargoes with invoices dated this month were in tight supply, and some traders started selling cargoes with invoices dated next month in advance, which indirectly pushed up premiums for cargoes dated this month.

Ultimately, the transaction price range in the central China market was between a premium of 10 yuan and a premium of RMB 25 over the central China price. The shipments sentiment index in central China was 2.83 April 22, flat M-o-M; the purchasing sentiment index was 2.39, up 0.03 M-o-M.