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The morning session saw the SHFE aluminium 2606 contract trade with a centre lower than the same period of the previous trading day. As aluminium prices declined, the release of stockpiling demand from earlier price drops, combined with pervasive bearish sentiment, kept overall buying interest weak today.
{alcircleadd}Transaction prices continued to move lower, with mainstream trades at a discount of RMB 30-50 per tonne against the SHFE aluminium July contract. The east China shipment sentiment index stood at 2.98 today, down 0.13 D-o-D; the purchase sentiment index was 2.83, down 0.24 D-o-D.
The morning session today corrected sharply from yesterday, with central China traders raising their offers. Given the low prices, suppliers showed weak selling sentiment and a notable willingness to hold prices firm and hold back from selling. Downstream processing enterprises displayed clear fear of further declines, strong wait-and-see sentiment, and consequently weaker buying interest.
Ultimately, actual transaction prices in the central China market centred around a discount of RMB 60-90 per tonne against the SHFE aluminium July contract. The central China shipment sentiment index was 2.93 today, down 0.02 D-o-D; the purchase sentiment index was 2.20, down 0.01 DoD. On the inventory front, aluminium ingot stocks in major consuming regions fell by 1.65 W-o-W today, with all three regions showing destocking.
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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