Futures Prices Pulled Back, Market Confidence in Prices Declined [SMM Spot Aluminum Midday Review]

SMM April 9 update:

SHFE aluminum 2604 fluctuated downward in the morning session, with the price center moving lower than the previous day. Affected by declining aluminum prices, sellers raised their offers, and overall market shipment sentiment weakened. As some downstream players held inventory and aluminum prices remained at high levels, overall purchasing sentiment also declined today. Market transactions were mainly concentrated at SMM A00 aluminum at a discount to a premium of 10-20 yuan/mt. Today, the east China market shipment sentiment index was 3.25, down 0.09 MoM; the purchasing sentiment index was 3.24, up 0.56 MoM.

SHFE aluminum futures prices fluctuated and pulled back today. The central China market lacked confidence in prices, with a strong wait-and-see atmosphere and slightly declining buying sentiment. As futures fell, traders actively shipped out, but actual transaction prices were weak. Suppliers had a strong willingness to hold prices firm, with offers only slightly lower. Ultimately, actual transaction prices in the central China market ranged from parity to a premium of 30 yuan over the central China price. Today, the central China market shipment sentiment index was 2.73, flat MoM; the purchasing sentiment index was 2.4, down 0.04 MoM.

Inventory side, aluminum ingot inventory in major consumption areas increased by 2,000 mt MoM today, with the inventory buildup mainly from Guangdong and Wuxi.