Market Trading Sentiment Weakened, Narrowing of Premiums Faced Resistance [SMM Spot Aluminum Midday Review]

SMM April 10 update:

SHFE aluminum 2604 fluctuated upward in the morning session, with the price center moving higher than the previous day. Affected by rising aluminum prices, buyers showed low acceptance of high-priced aluminum ingots, pushing sellers to lower their offers, and transaction premiums continued to widen. Market transactions mainly centered around the SMM A00 aluminum discount average price. East China market shipment sentiment index was 3.25 today, flat MoM; procurement sentiment index was 3.01, down 0.24 MoM.

Futures prices of aluminum recovered somewhat today. The market trading atmosphere remained sluggish overall, but as the weekend approached, downstream processing enterprises showed a slight recovery in stockpiling sentiment. Additionally, some state-owned enterprises unwound previous arbitrage positions and shipped out large volumes, loosening the supply of circulating goods in the market, and actual trading volume increased compared to the previous day. Ultimately, the actual transaction price range in the central China market hovered between central China price plus a premium of 40 yuan and central China price minus a discount of 10 yuan. Central China market shipment sentiment index was 2.76 today, up 0.02 MoM; procurement sentiment index was 2.44, up 0.04 MoM.

Inventory side, aluminum ingot inventory in major consumption areas increased by 2,500 mt MoM today, with the inventory buildup mainly coming from Guangdong and Wuxi.