SHFE aluminium December contract fluctuated upward in the morning session, but the absolute price pulled back compared with the previous trading day. Market transaction sentiment recovered in East China, with downstream maintaining just-in-time procurement, while traders actively made purchases. Spot discounts were relatively large, and holders held prices firm and were reluctant to sell.
Actual transactions were mainly at parity to a premium of RMB 10 per tonne against the SMM average price, and spot discounts showed signs of narrowing. Today, the East China market selling sentiment index was 2.71, up 0.09 m-o-m; the purchasing sentiment index was 2.63, up 0.03 m-o-m. SMM A00 aluminium was quoted at RMB 21,770 per tonne, down RMB 110 per tonne from the previous trading day, at a discount of 90 per tonne against the December contract, flat from the previous trading day.
Today, transaction conditions in the central China market held steady. The absolute futures price pulled back, and downstream purchase willingness rebounded. However, due to large premiums and discounts and the price spread between futures contracts, most holders adopted a wait-and-see stance. The market atmosphere was characterised by a relative shortage of goods, and purchasers successively raised their bids, leading to continuously rising market quotations.
Ultimately, actual transaction prices ranged from a premium of RMB 10 yuan to a premium of RMB 50 yuan against the central China price. Today, the central China market selling sentiment index was 2.78, down 0.08 m-o-m; the purchasing sentiment index was 2.79, up 0.01 m-o-m. SMM central China aluminium closed at RMB 21,660 per tonne, down RMB 80 per tonne from the previous trading day, at a discount of RMB 200 per tonne against the December contract, up RMB 30 per tonne from the previous trading day. The price spread between Henan and Shanghai was -RMB 110 per tonne, up RMB 30 per tonne from the previous trading day.
Inventory side, aluminium ingot inventory in major consumption areas totalled 434,000 mt on Wednesday, destocking 5,500 mt w-o-w. Aluminium ingot inventory continued to show destocking. Seasonal factors affected the transportation of aluminium ingots from Xinjiang, leading to some accumulation of ingots in Xinjiang. Aluminium ingot inventory is expected to show a slow destocking trend in the short term. In the short term, with the absolute price pulling back, traders are expected to hold prices firm to repair spot discounts, and spot discounts are expected to narrow.
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.
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