Trading sentiment was mainly sluggish, and factory purchasing enthusiasm was low [SMM Spot Aluminum Midday Review].

SMM, July 23:

In the morning session, the price center of the SHFE aluminum 2606 contract was higher than the same period in the previous trading day. Affected by the off-season, market purchasing sentiment remained at weak levels, and with still ample market supply of circulating goods, market price acceptance did not see an increase. The mainstream transaction price was a discount of 10–20 yuan/mt against the SHFE aluminum 08 contract. In east China today, the selling sentiment index was 3.13, up 0.03 day-over-day; the purchasing sentiment index was 2.90, flat day-over-day.

In the central China market today, trading atmosphere remained sluggish. Safety inspections slightly limited the production pace of downstream processing enterprises, and low factory purchasing enthusiasm weighed on overall market purchasing sentiment. However, as aluminum prices consolidated and rebounded, the selling sentiment of some suppliers was lifted, but suppliers had weak willingness to hold prices firm, and only large traders maintained high premiums. Ultimately, the actual transaction price range in central China was around a discount of 120–140 yuan/mt against the SHFE aluminum 08 contract. In central China today, the selling sentiment index was 3.09, up 0.02 day-over-day; the purchasing sentiment index was 2.87, down 0.03 day-over-day.

In terms of inventory, the aluminum ingot inventory in major consumption areas fell by 0.4 day-over-day, with all three regions showing destocking trends.