SHFE Cast Aluminum Alloy Warrants Down 689 mt to 21,523 mt on July 13

The July off-season, compounded by high temperatures, kept operating rates at downstream processing enterprises in the central China market low, with buying sentiment remaining persistently sluggish. However, wide premiums prompted traders’ hedging sentiment to push up discounts and capture price spreads, resulting in relatively strong buying interest among them. Meanwhile, suppliers’ pronounced willingness to hold prices firm and sell drove the market discounts higher. Ultimately, the actual transaction price range in the central China market centered around a discount of 130-170 yuan/mt against the SHFE aluminum August contract.

[Expectations for US Fed Interest Rate Hikes Persist, Geopolitical Premiums Underpin Aluminum Prices' Bottom Resilience] According to comprehensive forecasts, aluminum prices will continue to consolidate on a strong note and encounter resistance in the short term.