SMM April 20 update:
SHFE aluminum 2605 fluctuated downward in early trading, but overall aluminum prices remained at high levels. End-users mainly made just-in-time procurement, and traders' buying sentiment was relatively positive, influenced by declining aluminum prices and wider premiums. Mainstream transactions in the market were concentrated around SMM A00 aluminum -10 yuan/mt to +10 yuan/mt. The shipment sentiment index in the east China market was 3.4 today, down 0.32 MoM; the procurement sentiment index was 3.06, flat MoM.
SHFE aluminum prices pulled back today, but high aluminum prices still suppressed buying sentiment in the central China market. Downstream processing enterprises mostly adopted a wait-and-see approach, with slight pressure to push for lower prices in actual transactions. However, overall buying sentiment recovered compared to the previous two days. Suppliers had a strong willingness to hold prices firm, transaction prices remained stable, and the downward trend was not significant. Ultimately, actual transaction prices in the central China market ranged between a 20 yuan premium over the central China price and parity. The shipment sentiment index in the central China market was 2.85 today, flat MoM; the procurement sentiment index was 2.39, up 0.04 MoM.
Inventory side, aluminum ingot inventory in major consumption areas increased by 28,000 mt MoM today, with all three regions showing inventory buildup.
