Today, SHFE aluminium fluctuated in the morning session, with its centre moving higher. From the perspective of spot market performance, social inventory destocking provided support for local spot premiums. Downstream enterprises purchased aluminium as needed amid high aluminium prices.
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Specifically, trading in eastern China was moderate today. Limited arrivals provided strong support for prices. Overall, purchases were made as needed, and market transactions were concluded at prices ranging from the SMM average price to RMB 10 per tonne above it. Today, SMM A00 aluminium was quoted at RMB 20,310 per tonne, up RMB 100 per tonne from the previous trading day, with a premium of RMB 70 per tonne against the June contract, unchanged from the previous trading day.
In the central China market, transactions were mainly concluded at prices around the SMM central China average price. SMM central China A00 aluminium was recorded at RMB 20,24 per tonne against the SHFE aluminium 2506 contract, up RMB 100 per tonne from the previous trading day. The price spread between central China and eastern China was RMB 70 per tonne, unchanged from the previous trading day, and it was on par with the 2506 contract.
In terms of inventory, according to SMM's domestic aluminium ingot inventory data, the three-region inventory of domestic aluminium ingots stood at 447,000 tonnes on May 21, a destocking of 10,500 tonnes from the previous day. In the short term, limited arrivals in eastern China are conducive to the firming up of premiums and discounts. Attention should be paid to changes in demand in the future.
Note: This article has been issued by SMM and has been published by AL Circle with its original information, and without any modifications or edits to the core subject/data.
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