Alumina Futures 2605 Contract: Mixed Price Movements Amid Declining Activity

Inventory side, aluminum ingot inventory in major consumption areas increased by 4,500 mt WoW, with the main sources of inventory buildup being Guangdong and Wuxi. In the short term, high aluminum prices may continue to suppress end-use demand, and coupled with the impact of downstream Chinese New Year breaks, aluminum ingots still face inventory buildup risks. Spot premiums/discounts are expected to remain under pressure.

Today, trading in the central China market remained sluggish. As the Chinese New Year holiday approached, downstream processing enterprises had largely completed pre-holiday stockpiling, with only minimal just-in-time procurement and some traders buying the dip for stockpiling. Today, the central China market shipment sentiment index was 2.72, down 0.01 WoW; the purchase sentiment index was 2.16, down 0.01 WoW. SMM central China closed at 23,170 yuan/mt, down 110 yuan/mt from the previous trading day, at a discount of 310 yuan/mt against the 2602 contract, down 20 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -120 yuan/mt, flat from the previous trading day.

SMM February 10 report: SHFE aluminum 2602 fluctuated downward in the morning session, with the price center lower than the previous trading day. Affected by the approaching Chinese New Year, overall market procurement sentiment was weak, prompting sellers to lower prices. Mainstream transaction prices were concentrated at discounts of 20 yuan/mt to 10 yuan/mt. Today, the east China market shipment sentiment index was 2.7, down 0.08 WoW; the purchase sentiment index was 2.5, down 0.11 WoW. On February 10, SMM A00 aluminum was quoted at 23,290 yuan/mt, down 110 yuan/mt from the previous trading day, at a discount of 190 yuan/mt against the 2602 contract, down 20 yuan/mt from the previous trading day.