Most-traded SHFE aluminum contract fluctuated downward, and the spot discount of east and central China expanded [SMM spot aluminum midday review]

In today's early trading, the most-traded SHFE aluminum contract fluctuated downward. Today, holders in east China mainly shipped goods. The sentiment for purchasing improved as the market prices fell, and the overall transaction was moderate. According to SMM statistics, today the inventory of aluminum ingots in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) is 280,000 tons, a decrease of 2,300 tons from the previous trading day. Today, the SMM A00 aluminum price is at a discount of about 80 yuan/ton against 2405 contract, a decrease of 20 yuan/ton from the previous trading day. The spot price was recorded at 20,570 yuan/ton. In the second trading period, the prices fluctuated and moved downward. Today, the mainstream transaction prices in east China were at a discount of about 10 yuan/ton to a premium of about 10 yuan/ton to the SMMA00 aluminum price.

Today, spot transactions in central China were weak, with downstream purchases mainly driven by rigid demand, and spot discounts widened again. According to SMM statistics, the inventory of aluminum ingots in Gongyi was about 105,500 tons today, a decrease of 300 tons from the previous trading day. Today, the SMM central China price was at a discount of about 190 yuan/ton to the 2405 contract, a decrease of 40 yuan/ton from the previous trading day. The average spot price was 20,460 yuan/ton. The mainstream spot transactions were at a discount of 10 yuan/ton to a premium of about 10 yuan/ton to the SMM central China price in the early trading.

Overall, according to SMM data, the inventory of aluminum was 794,000 tons on Monday. After the Labour Day holiday, the inventory increased slightly by 3,000 tons compared with last Monday. On the supply, the window for imported primary aluminum continued to remain closed, while the domestic supply of aluminum maintained a growth trend. On the demand, the downstream operating rate remained stable, and the overall domestic supply and demand contradiction was not large. However, high aluminum price suppressed the downstream sentiment of taking delivery, and the spot market may maintain a discount in the short term. We need to pay attention to the inventory of aluminum ingots after the Labour Day holiday.