East China Market Trading Active With Prices Rising, Central China Purchasing Sentiment Rebounding [SMM Spot Aluminum Midday Review]

SMM May 28 update:

The SHFE aluminum 2606 contract fluctuated downward in early trading, with the overall price center moving significantly lower than the previous trading day. Affected by declining aluminum prices, some sellers' selling sentiment weakened, while downstream enterprises' buying sentiment rose MoM, pushing up buyers' price acceptance levels. Mainstream spot quotes in the market ranged from SMMA00 average price to +10 yuan/mt. East China market shipment sentiment index was 2.97 today, down 0.06 MoM; procurement sentiment index was 3.36, up 0.1 MoM.

Futures declined today. In the central China market, downstream processing enterprises' procurement sentiment rebounded slightly, but purchases remained primarily need-based and in small volumes. Suppliers tended to ship in large volumes when the spot-futures price spread was relatively small, and market shipment sentiment improved notably. Overall transaction activity became more active compared to the previous two days. The actual transaction price range in the central China market ultimately centered around a premium of 10 yuan to a discount of 10 yuan relative to the central China price. The central China market shipment sentiment index was 2.86 today, up 0.03 MoM; procurement sentiment index was 2.26, up 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas rose 1,500 mt MoM today, with the inventory buildup mainly driven by the Gongyi area.