Strong downstream wait-and-see sentiment, market transaction prices fell from the opening [SMM Spot Aluminum Midday Review]

On June 22, SMM reported:

In early trading, the SHFE aluminum 2606 contract fluctuated downward, with the overall operational center at the opening higher than that of the same period on the previous trading day. Affected by the rise in aluminum prices, downstream predominantly stayed on the sidelines today, and buying sentiment weakened slightly. Market circulation was sufficient, and sellers' offers and transaction prices continued to decline. Mainstream spot aluminum transaction prices were at a discount of 40-50 yuan/mt against the SHFE aluminum July contract. Today, the east China market shipment sentiment index was 2.95, up 0.04 MoM; the purchase sentiment index was 2.93, down 0.27 MoM.

On the first day after the holiday, aluminum prices rebounded. In the central China market, downstream processing enterprises' buying sentiment was not high, but suppliers were active in selling and had weak intention to hold prices firm. Market transactions were relatively subdued, mostly featuring stockpiling by traders. Eventually, the actual transaction price range in the central China market centered around a discount of 90-110 yuan/mt against the SHFE aluminum July contract. Today, the central China market shipment sentiment index was 2.94, up 0.01 MoM; the purchase sentiment index was 2.22, down 0.01 MoM.

In terms of inventory, today, aluminum ingot inventory in major consuming areas fell by 1.4 MoM, with destocking observed in all three regions.