Today, SHFE aluminium fluctuated upward in the morning session. Outflows from warehouses were good in major consumption areas. In terms of spot market performance, spot aluminium in eastern China performed moderately, with a focus on selling. High premiums loosened somewhat, and early in the morning, the market saw transactions at a RMB 10 per tonne discount against the SMM average price.
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Today, SMM A00 aluminium was quoted at RMB 20,280 per tonne, up RMB 160 per tonne from the previous trading day, with a premium of RMB 100 per tonne against the June contract, narrowing by RMB 10 per tonne from the previous trading day.
In the central China market, premiums are held steady today, with transactions mainly focused on selling against the average price of SMM central China. SMM A00 aluminium in central China was recorded at RMB 20,230 per tonne against the SHFE aluminium 2506 contract, up RMB 160 per tonne from the previous trading day. The price spread between central China and eastern China was RMB 50 per tonne, unchanged from the previous trading day, with a premium of RMB 50 per tonne against the 2506 contract.
On the inventory side, according to SMM data on aluminium ingot inventory in three domestic regions, domestic aluminium ingot inventory stood at 391,500 tonnes on June 4, a destocking of 10,500 tonnes from the previous trading day. In the short term, the lower arrival of goods is conducive to maintaining premiums, but downstream acceptance of high premiums has decreased. Coupled with active selling by holders, premiums and discounts are expected to drop back slightly in the short term.
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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