Aluminum Futures Fell for Consecutive Days, Trading Atmosphere Sluggish [SMM Spot Aluminum Midday Commentary]

SMM June 26 news:

During morning trading, the center of SHFE aluminum 2606 contract was higher than the same period of the previous trading day. Impacted by the rise in aluminum prices and yesterday's restocking, overall procurement sentiment weakened today. However, supported by sellers' willingness to hold prices firm at recent lows, transaction and offer prices moved higher. Mainstream transactions were at a discount of -10~0 yuan/mt against the SHFE aluminum July contract. In east China today, the selling sentiment index was 3.14, up 0.25 from the previous day; procurement sentiment index was 3.00, down 0.16 from the previous day.

Futures aluminum prices fell for consecutive days, leaving trading sentiment in central China sluggish, with strong bearish sentiment and limited stockpiling willingness on Friday. Downstream processing enterprises preferred warrant or long-term contract transactions, leading to large inflows of warrants and weak inclination among suppliers to hold prices firm, pushing transaction prices continuously lower. Eventually, the actual transaction price range in central China was around a discount of 10-40 yuan/mt against the SHFE aluminum July contract. Today's central China selling sentiment index was 2.90, up 0.01 from the previous day; procurement sentiment index was 2.14, flat from the previous day.

On the inventory front, aluminum ingot inventories in major consumption regions fell 19,000 mt WoW today, with destocking observed in all three regions.