Downstream Buying Sentiment Sluggish, Seller Buying Sentiment Rising [SMM Spot Aluminum Midday Review]

SMM May 11 update:

During the morning session, the SHFE aluminum 2605 contract fluctuated upward, with the overall price center rising compared to the previous trading day. Driven by higher aluminum prices, market shipment sentiment rose notably today, with increased activity on the offer side, though buying activity showed no significant improvement. The mainstream spot quotation shifted from the SMM A00 aluminum average price down to SMM A00 minus 10 yuan/mt. The east China market shipment sentiment index was 2.91 today, up 0.17 MoM; the purchasing sentiment index was 2.66, flat MoM.

The trading atmosphere in the central China market remained relatively subdued today but improved slightly WoW. Buying sentiment among downstream processing enterprises remained sluggish. As aluminum prices rose, market trading premiums showed a downward trend, with quotations declining from a premium of 20-30 yuan/mt over the central China price before the opening to a range between a premium of 10 yuan/mt and a discount of 10 yuan/mt to the central China price. The central China market shipment sentiment index was 2.82 today, up 0.01 MoM; the purchasing sentiment index was 2.29, up 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption regions fell 1.1 MoM today, with destocking mainly in Guangdong and Gongyi.