SMM March 2 report:
In the morning session, SHFE aluminum 2602 fluctuated upward, with the price center higher than the previous trading day. Influenced by the US-Iran conflict, the market's bullish sentiment was strong, and buying sentiment increased. The mainstream quotations were concentrated between -10 yuan/mt and 10 yuan/mt, with the main transactions at 10 yuan/mt. Today, the shipment sentiment index in east China was 2.94, up 0.05 MoM; the purchasing sentiment index was 2.93, up 0.2 MoM. SMM A00 aluminum closed at 236,200 yuan/mt, up 2,100 yuan/mt from the previous trading day, at a discount of 1,700 yuan/mt against the 2603 contract, unchanged from the previous trading day.
The international situation boosted aluminum prices, and today, traders in central China had a strong bullish sentiment, with overall transaction sentiment strengthening. Some large downstream processing enterprises stopped purchasing due to high inventory, but influenced by the bullish sentiment, traders' willingness to hold prices firm was strong. Although buyers preferred to purchase at lower prices, the actual transaction prices remained relatively firm. Ultimately, the actual transaction prices in the central China market ranged from a premium of 10 yuan/mt over the central China price to parity or a discount of 10 yuan/mt. Today, the shipment sentiment index in central China was 2.63, up 0.03 MoM; the purchasing sentiment index was 2.29, up 0.06 MoM. SMM central China closed at 235,000 yuan/mt, up 2,100 yuan/mt from the previous trading day, at a discount of 2,900 yuan/mt against the 2603 contract, unchanged from the previous trading day. The price spread between Henan and Shanghai was -1,200 yuan/mt, unchanged from the previous trading day.
In terms of inventory, the aluminum ingot inventory in major consumption areas increased by 60,000 mt MoM today. Due to seasonal factors, all three regions showed an inventory buildup. In the short term, after the Chinese New Year, aluminum ingots continued to experience seasonal inventory buildup, and spot premiums and discounts were expected to remain under pressure.
