SMM May 19 update:
During the morning session, the SHFE aluminum 2606 contract traded in a range, with the overall price center moving higher compared to the previous trading day. Today, some downstream enterprises began stockpiling, and overall market buying sentiment rose significantly compared to yesterday. Sellers were widely holding prices firm, with some holding back from selling, and mainstream transaction prices continued to rise. Mainstream spot quotes in the market ranged from SMMA00 average price to +20 yuan/mt. Today, the east China market shipment sentiment index was 2.95, down 0.02 DoD; the procurement sentiment index was 3.03, up 0.25 DoD.
In the central China market, insufficient invoice quotas restricted suppliers' shipments, and the willingness to hold prices firm and hold back from selling was notable, with market transaction prices remaining high. Moreover, with aluminum prices recovering slightly while the sustainability of subsequent orders from downstream processing enterprises remained uncertain, the market trading atmosphere remained sluggish overall. Ultimately, actual transaction prices in the central China market ranged from parity to a premium of 30 yuan over the central China price. Today, the central China market shipment sentiment index was 2.82, down 0.01 DoD; the procurement sentiment index was 2.3, down 0.02 DoD.
Inventory side, aluminum ingot inventory in major consumption regions fell 7,000 mt DoD today, with destocking mainly coming from Wuxi and Guangdong.
