Destocking emerged across multiple regions, boosting sentiment for spot aluminium purchases

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In the morning session, the centre of the SHFE aluminium 2608 contract edged slightly higher than yesterday, while downstream purchasing sentiment was sluggish. The aluminium price centre moved up, and the destocking pace slowed. SHFE aluminium retreated after a rapid rise in the night session, and there were slight divergences in market quoting attitudes.

Today, SHFE aluminium spot premiums and discounts mainly centred in a range from a premium of RMB 8-40 per tonne to a discount of RMB 8-20 per tonne. The shipment sentiment index in east China was 3.1, up 0.01 from yesterday; the procurement sentiment index was 2.86, up 0.06 from yesterday.

Today, the centre of aluminium futures edged down slightly from the previous day's morning session. Coupled with relatively wide overall quoted premiums and discounts, traders in central China showed a notable willingness to hold prices firm and hold back from selling, driving market prices steadily higher, while the shipment sentiment index continued to decline.

Transactions were mostly driven by hedging arbitrage by futures and spot traders, and downstream processing enterprises showed limited purchasing interest. Ultimately, actual transaction prices in central China centred around a discount of RMB 170-200 per tonne against the SHFE aluminium August contract.

The shipment sentiment index in central China was 2.99, down 0.2 from yesterday; the procurement sentiment index was 2.94, up 0.03 from yesterday. In terms of inventory, aluminium ingot inventories in major consumption regions fell by 9,500 tonnes from the previous day, with destocking seen in Guangdong, Wuxi, and Gongyi.

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.