More Regions Continue Destocking, SHFE Aluminum Spot Discounts Temporarily Stop Falling [SMM Aluminum Spot Midday Review]

SMM August 6 news:

In the morning session, the SHFE aluminum 2608 contract traded with its center notably higher than yesterday. Current prices have suppressed downstream purchasing, but with delivery approaching some suppliers were unwilling to sell at low prices. Today, quotes for SHFE aluminum were mostly near a discount of 30 yuan/mt against the August contract. The east China selling sentiment index was 3.13, up 0.03 DoD, and the purchasing sentiment index was 2.96, up 0.10 DoD.

Today, the trading atmosphere in the central China market held at the level of the previous two days. Trading firms engaging in both spot and futures markets actively purchased to capture price spreads, and with deep discounts, suppliers showed a stronger willingness to hold prices firm and hold back from selling, driving market transaction quotes to climb continuously. In the end, actual transaction prices in the central China market were around discounts of 140-170 yuan/mt against the SHFE aluminum August contract. The central China selling sentiment index was 2.97, down 0.02 DoD, while the purchasing sentiment index was 2.96, up 0.02 DoD.

On the inventory front, aluminum ingot inventory in major consuming regions fell by 14,500 mt DoD, with Guangdong, Wuxi, and Gongyi all seeing destocking.