Central China market recovers slightly, East China market remains sluggish

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In the early session, the trading centre of the SHFE aluminium 2606 contract was higher than the same period of the previous trading day. Market warrant supply continued to flow out, and overall circulating spot supply was loose. Downstream saw only sporadic restocking, and with bearish sentiment spreading on futures, end-user purchase willingness was generally weak.

Mainstream transactions were at parity to a premium of RMB 20 per tonne against the SHFE aluminium 2407 contract. Today, the east China market shipment sentiment index was 2.91, up 0.08 from the previous trading day; the purchase sentiment index was 2.73, flat from the previous trading day.

Futures aluminium corrected from the early session of the previous day. Today, the central China spot market trading atmosphere warmed slightly, with sentiment of rushing to buy amid continuous price rise and holding back amid price downturn evident among downstream processing enterprises. Moreover, the absolute price recovery boosted suppliers' shipment sentiment, and overall market trading volume increased from the previous day.

The actual transaction price range in the central China market ended up being centred around a discount of RMB 40-60 per tonne against the SHFE aluminium 2407 contract. Today, the central China market shipment sentiment index was 2.88, up 0.02 from the previous day; the purchase sentiment index was 2.11, up 0.01 from the previous day.

On the inventory front, aluminium ingot inventory in major consuming regions fell 1.1 from the previous day, with destocking seen across 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.