SHFE aluminium fluctuated in the morning session, hovering around RMB 21,570 per tonne. In East China, high absolute prices dampened end-users' buying sentiment, with sporadic transactions concluded at a small discount to the SMM average price. However, as the price spread between futures contracts widened slightly, traders showed moderate purchasing enthusiasm, with good transactions concluded at parity to the SMM average price and sporadic deals done at a small premium to the SMM average price.
Today, the East China market selling sentiment index was 2.97, up 0.10 m-o-m; the buying sentiment index was 2.87, up 0.09 m-o-m. SMM A00 aluminium closed at RMB 21,540 per tonne, up RMB 180 per tonne from the previous trading day, at a discount of about RMB 30 per tonne against the 2511 contract, flat from the previous trading day.
Amid high aluminium prices, trading in the central China market was relatively sluggish today. Pre-market offers were mostly at a premium of RMB 10 yuan to the central China price, but significant fear of high prices among downstream players led to limited purchases. Actual transaction prices mainly ranged from parity to a premium of RMB 10 yuan against the central China price.
Today, the central China market selling sentiment index was 2.89, flat m-o-m; the buying sentiment index was 2.87, down 0.01 m-o-m. SMM central China aluminium closed at RMB 21,420 per tonne, up RMB 180 per tonne from the previous trading day, at a discount of RMB 150 per tonne against the November contract, flat from the previous trading day. The price spread between Henan and Shanghai was -RMB 120 per tonne, unchanged from the previous trading day.
Inventory side, aluminium ingot inventories in major consumption areas totalled 464,500 tonnes on Friday, down 4,000 tonnes w-o-w. In the short term, high prices are suppressing downstream cargo pick-up and stockpiling activities, and aluminium ingot inventories are expected to face slow destocking. Spot premiums and discounts are likely to remain under pressure in the near 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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