Most-traded SHFE aluminum contract fluctuated upward, and the spot discount of east and central China narrowed slightly [SMM Spot Aluminum Midday Review]

In today's early trading, the most-traded SHFE Aluminum fluctuated upward. Today, the holders in east China mainly shipped goods and the transaction was average. According to SMM statistics, today the aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) is 275,100 tons, a decrease of 1,900 tons from the previous trading day. Today, the SMM A00 aluminum price is at a discount of about 60 yuan/ton to the 2405 contract, an increase of 10 yuan/ton from the previous trading day. The spot price was recorded at 20,520 yuan/ton. In the second trading period, the price center moved up. Today, the mainstream transactions in east China are at a discount of 10 yuan/ton to a premium of about 10 yuan/ton to the SMMA00 aluminum price.

Today's spot transactions in the central China are moderate, with downstream purchases mainly driven by rigid demand. According to SMM statistics, the inventory of aluminum ingots in Gongyi is about 106,200 tons today, an increase of 1,400 tons from the previous trading day. Today, the SMM central China price is about 140 yuan/ton discount to the 2405 contract, an increase of 10 yuan/ton from the previous trading day. The average spot price is 20,440 yuan/ton. The mainstream spot transaction price in the early trading are about discounts of 20 yuan/ton to premium of 20 yuan/ton to the SMM central China price.

Overall, according to SMM data, aluminum inventories were 778,000 tons on Thursday, down 13,000 tons from last Monday and 16,000 tons from Monday. On the supply, the window for primary aluminum imports continued to remain closed. The current loss on importing primary aluminum per ton is still over RMB 1,000. The inventory of aluminum ingots in the bonded area continued to grow, and the inflow of imported goods is limited. However, the domestic supply of aluminum maintained a growth trend, and the downstream operating rate on the demand remained stable. There is not much contradiction between the overall supply and demand. However, high aluminum price suppressed the downstream sentiment of purchasing, and the spot market may maintain a discount in the short term.