SHFE Cast Aluminum Alloy Warrants Down 510 mt to 22,727 mt on July 8

[SMM Aluminum Alloy Flash] This week, China's social inventory of secondary aluminum alloy ingots fell by 9,000 mt WoW to 35,300 mt, marking the sixth consecutive week of destocking. Constrained by tax invoices, the industry's operating rate remained low, with limited new warehouse inflows; meanwhile, favorable spot-futures price spreads prompted increased sales of spot and futures aluminum, further accelerating the destocking of social inventory.

SHFE aluminum prices corrected slightly in early trading today. Downstream processing enterprises in the central China market were constrained by weak end-user orders and high finished product inventories, leading to subdued buying sentiment. However, amid the widening discount trend, trading firms engaging in both spot and futures market maintained strong buying sentiment, tending to purchase at deep discounts, while suppliers showed notable willingness to hold prices firm. Ultimately, the actual transaction price range in the central China market was centered around a discount of 120-140 yuan/mt against the SHFE aluminum July contract.