East China shipment sentiment strengthens, central China market’s sentiment of holding prices firm and holding back from selling runs strong [SMM Spot Aluminum Midday Review]

SMM June 17:

In early trading, the SHFE aluminum 2606 contract fluctuated upward, with its center running higher than that at the same time yesterday. However, as aluminum prices held near recent lows, buyers’ purchasing sentiment remained relatively active, driving sellers’ quotes and transaction prices to strengthen further. Today, influenced by the rise in aluminum prices, some sellers’ shipment sentiment edged up slightly from yesterday. The mainstream spot transaction price was at a discount of 60-80 yuan/mt against the SHFE aluminum 2407 contract. Today, the east China selling sentiment index was 2.91, up 0.08 from yesterday; the purchasing sentiment index was 3.06, unchanged from yesterday.

Futures prices held at monthly lows. Today, in the central China market, inventory-holding traders showed strong sentiment to hold prices firm and hold back from selling, tending to quickly narrow premiums to capture price spreads. However, downstream processing enterprises had low willingness to purchase at high prices. The market saw a tug-of-war between holding prices firm and pushing for lower prices, with premiums showing a downward trend. Ultimately, the actual transaction price range in central China centered around a discount of 100-130 yuan/mt against the SHFE aluminum 2407 contract. Today, the central China selling sentiment index was 2.92, up 0.01 from yesterday; the purchasing sentiment index was 2.21, down 0.01 from yesterday.

On the inventory front, the aluminum ingot inventory in mainstream consumption regions fell by 1.65 from yesterday, with all three regions showing destocking.