The SHFE aluminium December contract mainly fluctuated upward in the morning session. In east China, holders offered near the SMM average price at the opening, but with concentrated selling and ample spot supply in the market, buyers preferred discounted transactions.
Actual transaction prices were at a discount of around RMB 10 per tonne against the SMM average. As futures rose further, buyers' purchase willingness expanded the discount range. Today, the East China market selling sentiment index was 3.02, down 0.07 m-o-m; the purchasing sentiment index was 2.95, down 0.11 m-o-m. SMM A00 aluminium closed at RMB 21,440 per tonne, up RMB 80 per tonne from the previous trading day, at a discount of RMB 10 per tonne against the December contract, down RMB 10 per tonne from the previous trading day.
In central China, trading remained sluggish today. Traders mainly sold spot cargo for hedging purposes, while downstream enterprises showed low purchase willingness. Traders found it difficult to hold prices firm, and offers continued to decline. Final transaction prices kept falling from pre-opening levels, ranging from parity to a discount of RMB 20 per tonne against the central China price. Today, the central China market selling sentiment index was 2.95, down 0.02 m-o-m; the purchasing sentiment index was 2.90, down 0.02 m-o-m.
SMM central China aluminium closed at RMB 21,330 per tonne, up RMB 70 per tonne from the previous trading day, at a discount of RMB 120 per tonne against the December contract, down RMB 20 per tonne from the previous trading day. The Henan-Shanghai price spread was -RMB 110 per tonne, down RMB 10 per tonne from the previous trading day.
Inventory side, aluminium ingot inventories in major consumption areas totalled 459,500 tonnes on Tuesday, destocking 1,500 tonnes w-o-w. Tuesday’s market sentiment further weakened. Buyers mainly made just-in-time procurement, while sellers actively offloaded cargo. The off-season atmosphere gradually deepened, and spot premiums per discounts are expected to fluctuate 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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