Futures: The most-traded aluminium alloy 2606 contract closed at RMB 23,595 per tonne overnight, down RMB 55 from the previous trading day's close, a decline of 0.23per cent. Trading volume was 1,340 lots, down 2,647 lots from the previous value, with a notable contraction in volume. Open interest stood at 12,896 lots, up 100 lots from the previous value, indicating slight capital inflow and divergence between bulls and bears. Sufficient volume during the rally phase and continued volume contraction during the pullback phase suggest limited selling pressure from bears and that bulls have not fully exited, characteristic of a healthy high-level shakeout structure.

Spot-futures price spread daily report: According to SMM data, on April 7, the SMM ADC12 spot price was at a theoretical premium of RMB 870 per tonne over the most-traded cast aluminium alloy contract (AD2606) closing price at 10:15 AM.

Warrant daily report: SHFE data showed that on April 7, total registered warrants for cast aluminium alloy were 31,183 tonne, down 453 tonne from the previous trading day. By region: Shanghai 1,912 tonne (down 30 tonne), Guangdong 12,358 tonne (down 121 tonne), Jiangsu 3,602 tonne (down 30 tonne), Zhejiang 8,471 tonne (down 272 tonne), Chongqing 3,634 tonne (unchanged), and Sichuan 1,206 tonne (unchanged).

Aluminium scrap: Spot primary aluminium fell RMB 30 per tonne from the previous trading day, while the aluminium scrap market saw mixed changes. On the price difference side, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was recorded at RMB 3,115 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 1,825 per tonne. 

The aluminium scrap market was expected to continue consolidating at highs this week, with shredded aluminium tense scrap (priced based on aluminium content) mainstream range operating around RMB 19,800-20,500 per tonne (tax exclusive). In the short term, close attention should still be paid to the impact of geopolitical conflicts on primary aluminium price fluctuations, the actual recovery of end-user orders, and the actual implementation progress of supply-side policies, with vigilance against the risk of wild swings in prices.

Silicon metal: Spot silicon metal prices trended weaker yesterday. SMM east China oxygen-blown #553 silicon was at RMB 8,900-9,100 per tonne, down RMB 100 per tonne from the previous day, and #441 silicon was at RMB 9,200-9,300 per tonne, down RMB 100 per tonne from the previous day. The SI2605 contract closed at RMB 8,260 per tonne yesterday. The decline in silicon prices stimulated the release of some rigid demand orders from downstream and traders, while weak supply and demand left silicon prices consolidating at lows.

Markets outside china: Ex-China ADC12 quotes remained in the range of USD 330-3,330per tonne, with instant import losses continuing at around RMB 2,000, and the theoretical import window remained closed.

Summary: Spot side, the ADC12 market continued to be in the doldrums yesterday. Affected by aluminium prices being in the doldrums and lacklustre demand-side performance, market sentiment turned cautious, with most participants slightly lowering offers while a few enterprises held firm and took a wait-and-see approach. As low-priced resources increased, the transaction centre shifted downward, and prices showed passive pullback characteristics. In the short term, against the backdrop of weakening marginal cost support and limited demand improvement, ADC12 prices were expected to remain in the doldrums.

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.