Central China market trading atmosphere stayed high, buying sentiment in east China rebounded MoM [SMM spot aluminum midday review]

SMM, July 13:

In early trading, the operation center of the SHFE aluminum 2606 contract was lower than the same period of the previous trading day. Affected by lower aluminum prices, today's market buying sentiment rose MoM. Transactions were done at parity to a premium of 10 yuan/mt against the SHFE aluminum 07 contract, and offers against the 08 contract were around a discount of 20 yuan/mt to parity. Today, the east China shipments sentiment index was 3.08, up 0.04 MoM; the buying sentiment index was 3.16, up 0.06 MoM.

Today, the trading atmosphere in the central China market stayed high. Trading firms engaging in both spot and futures market tended to purchase actively at low discounts, which boosted offers gradually higher. However, downstream processing enterprises were constrained by insufficient end-user orders, so their buying sentiment remained weak, leading to a significant divergence in purchase prices from those of traders. The final transaction price range in the central China market centered around a discount of 100-130 yuan/mt against the SHFE aluminum 08 contract. Today, the central China shipments sentiment index was 2.83, down 0.01 MoM; the buying sentiment index was 2.21, up 0.04 MoM.

In terms of inventory, today's aluminum ingot inventory in mainstream consumption regions fell 1.9 MoM, with all three regions showing a destocking trend.