Market Trading Atmosphere Remained Sluggish, Market Transaction Prices Declined [SMM Spot Aluminum Midday Review]

SMM May 12 update:

During the morning session, the SHFE aluminum 2605 contract fluctuated downward, with the overall price center slightly lower than the previous trading day. Some sellers held prices firm and held back from selling today. End-user buying sentiment remained at yesterday's level with no significant improvement, while some traders saw improved buying sentiment due to the approaching delivery date and higher premiums. The mainstream spot market quotation ranged from SMM A00 aluminum average price to SMM A00 minus 10 yuan/mt. The east China market shipment sentiment index was 2.86 today, down 0.05 DoD; the purchase sentiment index was 2.81, up 0.14 DoD.

The central China market trading atmosphere remained sluggish today. Aluminum prices continued to strengthen, and invoice quota changes stabilized. Downstream processing enterprises and traders maintained low buying sentiment, with overall quotations declining consecutively, and suppliers showed weak willingness to hold prices firm. Ultimately, the actual transaction price range in the central China market hovered between parity and a discount of 20 yuan to the central China price. The central China market shipment sentiment index was 2.82 today, unchanged DoD; the purchase sentiment index was 2.28, down 0.01 DoD.

Inventory side, aluminum ingot inventory in major consumption areas fell 0.2 DoD today, with destocking mainly in Wuxi and Gongyi.