Aluminum Prices Decline, Trading Sentiment in Central and East China Modestly Recovers [SMM Aluminum Spot Midday Review]

SMM July 16 news:

In the morning session, the trading center of the SHFE aluminum 2606 contract was below the same level as the previous trading day. Due to the off-season, market purchasing sentiment remained weak today, with just-in-time procurement as the main mode and sufficient market liquidity. Market transactions were at parity to a discount of 20 yuan/mt against the SHFE August contract. Today, the east China shipment sentiment index was 3.11, flat MoM; the purchase sentiment index was 3.04, up 0.04 MoM.

Today, trading sentiment in the central China market edged up again compared with the previous two days. Downstream processing enterprises began to show fear of high prices, and their purchase willingness improved significantly. Moreover, the sentiment among traders to hedge against price risks remained, and they continued to purchase in large quantities, prompting suppliers to hold prices firm. Ultimately, the actual transaction price range in central China centered around a discount of 140-160 yuan/mt against the SHFE August contract. Today, the central China shipment sentiment index was 2.81, up 0.02 MoM; the purchase sentiment index was 2.24, also up 0.02 MoM.

In terms of inventory, today, aluminum ingot inventory in major consuming regions fell by 0.9 MoM, with all three regions showing destocking.