SHFE Aluminum Falls Combined With Destocking, East China Spot Discounts Narrow [SMM Aluminum Spot Midday Review]

SMM August 20:

Today, SHFE aluminum futures prices were similar to the same period yesterday. Wuxi saw destocking today, consumption sentiment improved significantly from yesterday, and spot discounts narrowed. Today's transactions were around a discount of 20 yuan/mt to 0 yuan/mt against the SHFE aluminum September contract. Today, the east China market shipment sentiment index was 3.2, down 0.01 MoM; the purchase sentiment index was 3.16, up 0.04 MoM.

Today, SHFE aluminum futures prices adjusted slightly, and the trading atmosphere in central China remained sluggish. Futures prices stabilized and stopped falling sharply, but downstream processing enterprises' wait-and-see sentiment for purchases did not diminish. Only a few top-tier players maintained small restocking, and suppliers showed a clear intention to hold prices firm, so the downward trend in market quotes was not strong. Ultimately, the actual transaction price range in central China centered around a discount of 70-90 yuan/mt against the SHFE aluminum September contract. Today, the central China market shipment sentiment index was 3.1, down 0.01 MoM; the purchase sentiment index was 2.9, unchanged MoM.

On the inventory side, aluminum ingot inventory in major consuming regions fell by 10,500 mt MoM today, and all three regions experienced destocking.