SMM March 3 Report:
In the morning session, SHFE aluminum 2602 first rose then fell, with the price center higher than the previous trading day. Influenced by the US-Iran conflict, market sentiment was bullish, and buying sentiment increased. Mainstream quotations concentrated around parity to a premium of 20 yuan/mt, with the main transactions at 10 yuan/mt. Today, the shipment sentiment index in east China was 2.94, flat MoM; the purchasing sentiment index was 3.22, up 0.29 MoM.
Affected by geopolitical factors, aluminum prices surged, and traders continued to be bullish on aluminum prices, leading to an overall improvement in transaction sentiment in the central China market. The trend of inventory buildup persisted, and suppliers' willingness to sell was significant. However, the recovery of end-user orders after the holiday was poor, and downstream processing enterprises had not fully consumed their inventories, causing the buying sentiment to pull back. Ultimately, the actual transaction prices in the central China market ranged from parity to a discount of 20 yuan/mt. Today, the shipment sentiment index in the central China market was 2.67, up 0.03 MoM; the purchasing sentiment index was 2.26, down 0.03 MoM.
Regarding inventory, today's aluminum ingot inventory in major consumption areas increased by 7,500 mt MoM. Due to seasonal effects, all three regions showed an inventory buildup. In the short term, post-Chinese New Year, aluminum ingots continued to experience seasonal inventory buildup, and spot premiums and discounts are expected to remain under pressure.
