SHFE aluminum declines with signs of stabilization, spot premiums rebound [SMM Aluminum Spot Midday Review]

SMM, September 15:

SHFE aluminum futures fluctuated significantly today. The low prices in early trading attracted improved buying sentiment in the market, but as futures prices rose, subsequent spot transactions weakened somewhat. Today, A00 aluminum ingots were mainly quoted at a premium of 10-30 yuan/mt against the SHFE aluminum 2610 contract.

SHFE aluminum futures remained generally stable. In the central China market, buying sentiment among downstream processing enterprises declined compared with yesterday, with a relatively strong wait-and-see atmosphere and a preference for purchasing at lower premiums. However, major suppliers showed a strong willingness to hold prices firm, and although quotes trended slightly lower, they remained within a relatively high premium range. Ultimately, actual transaction prices in the central China market were centered around a discount of 40-80 yuan/mt against the SHFE aluminum October contract.

On September 15, SMM A00 aluminum was reported at 24,140 yuan/mt, up 60 yuan/mt from the previous trading day, at a premium of 30 yuan/mt against the 2609 contract, up 20 yuan/mt from the previous trading day, and at a premium of 20 yuan/mt against the 2610 contract. SMM central China closed at 24,060 yuan/mt, up 70 yuan/mt from the previous trading day, at a discount of 50 yuan/mt against the 2609 contract, up 30 yuan/mt from the previous trading day, and at a discount of 60 yuan/mt against the 2610 contract. The Henan-Shanghai price spread was -80 yuan/mt, narrowing by 10 yuan/mt from the previous trading day.