SHFE Aluminum Futures Continued Sharp Decline, Purchasing Sentiment in East China Rises [SMM Spot Aluminum Midday Review]

SMM June 25 news:

In early trading, the SHFE aluminum 2606 contract's center ran significantly below the level seen in the same period of the previous trading day. As aluminum prices declined to their lowest recent levels, overall market buying sentiment improved MoM from yesterday, pushing transaction prices higher. Mainstream transactions were made at a discount of 20-40 yuan/mt against the SHFE aluminum July contract. Today, the east China shipment sentiment index was 2.9, down 0.08 MoM; the purchase sentiment index was 3.16, up 0.34 MoM.

With SHFE aluminum futures continuing to drop sharply, suppliers in the central China market showed low willingness to sell. Traders largely preferred to offload spot warrants in volume, with limited inclination to hold prices firm. Downstream processing enterprises exhibited sluggish buying sentiment, making only limited just-in-time procurement, mainly of warrants, while spot transactions were sparse. Ultimately, the actual transaction price range in the central China market centered around a discount of 20-50 yuan/mt against the SHFE aluminum July contract. Today, the central China shipment sentiment index was 2.89, down 0.04 MoM; the purchase sentiment index was 2.14, down 0.06 MoM.

Inventory-wise, aluminum ingot inventories in major consumption regions fell by 1.35 today, with destocking mainly occurring in Guangdong and Wuxi.