Spot aluminium trading sentiment edged up slightly but remained at a low level

SHFE aluminium 2602 fluctuated upward in the morning session, with the price centre slightly higher than the previous trading day. Today, overall market buying sentiment improved slightly but remained at a low level, with mainstream transaction prices mainly ranging from a discount of RMB 10 per tonne to a premium of RMB 10 per tonne. The East China market selling sentiment index was 2.89, up 0.04 m-o-m; the buying sentiment index was 2.46, up 0.03 m-o-m. SMM A00 aluminium closed at RMB 23,710 per tonne, up RMB 30 per tonne from the previous trading day, at a discount of 150 per tonne against the 2602 contract, up 10 per tonne from the previous trading day.

The Central China market slightly increased compared to the previous day. Although downstream processing enterprises cut production by about 20% due to environmental protection-related controls, road transport gradually resumed after the heavy snow ended in Henan, leading to a slight overall improvement in buying sentiment. As aluminium plant shipments had not fully recovered, suppliers raised prices for shipments.

Actual transaction prices in the central China market today ranged from a premium of RMB 10 per tonne to a premium of RMB 40 per tonne against the central China price. The central China market selling sentiment index was 2.68, flat m-o-m; the buying sentiment index was 2.21, up 0.02 m-o-m. SMM central China aluminium closed at RMB 23,610 per tonne, up RMB 50 per tonne from the previous trading day, at a discount of RMB 250 per tonne against the 2602 contract, up RMB 30 per tonne from the previous trading day. The Henan-Shanghai price spread was -100 per tonne, narrowing by RMB 20 per tonne from the previous trading day.

On the inventory side, aluminium ingot inventory in major consumption areas decreased by 6,000 tonnes w-o-w on Wednesday, with destocking observed in all three regions. In the short term, high aluminium prices may continue to suppress end-use demand, aluminium ingots still face inventory buildup risks, and spot premiums per discounts are expected to remain under pressure.

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.