Some Traders and Downstream Enterprises Started Stockpiling, Slightly Boosting Procurement Sentiment [SMM Spot Aluminum Midday Review]

SMM April 23:

SHFE aluminum 2605 fluctuated downward in the morning session. Driven by weekend restocking, pre-Labour Day holiday stockpiling, and a shortage of invoices, overall buying sentiment among buyers for aluminum ingots with invoices dated this month increased significantly. Mainstream transactions in the market were concentrated around the SMM A00 aluminum average price to +10 yuan/mt. The shipment sentiment index in the east China market was 3.42 today, unchanged MoM; the purchase sentiment index was 3.32, up 0.06 MoM.

Approaching the weekend, some traders and downstream enterprises in the central China market initiated stockpiling demand, slightly boosting buying sentiment. However, against the backdrop of limited invoicing amounts, traders became more cautious in trading, with rising concerns over timely invoice fulfillment, which in turn suppressed market trading sentiment and kept transaction prices staying high. Ultimately, the actual transaction price range in the central China market hovered between parity with the central China price and a premium of 30 yuan over the central China price. The shipment sentiment index in the central China market was 2.81 today, down 0.01 MoM; the purchase sentiment index was 2.4, unchanged MoM.

Inventory side, aluminum ingot inventory in major consumption areas decreased 0.25 MoM today, with destocking mainly in Guangdong and Gongyi.