There is some demand for stocking among downstream enterprises before the holiday, and spot transactions improved [SMM Spot Aluminum Review]

The most-traded SHFE Aluminum fluctuated in early trading today, with the center shifting upward. Today, the main shipments were made by holders in east China. There was some demand for stocking up among downstream enterprises before the holiday, and the transaction was acceptable. According to SMM statistics, today's aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou, Haian and other places) is 281,700 tons, an increase of 2,900 tons from the previous trading day. Today's SMM A00 aluminum price has a discount of 90 yuan/ton to the 2404 contract, which was flat on the previous trading day, with the spot price recording 19,750 yuan/ton. During the second trading session, aluminum prices moved sideways. Today, the mainstream transaction price of SMMA00 aluminum in east China has a discount of 10 yuan/ton to a premium of about 20 yuan/ton.
Today, spot transactions in central China improved. There was some stocking demand in the downstream before the holiday. Holders held prices to ship goods, and the discount narrowed. According to SMM statistics, the inventory of aluminum ingots in Gongyi was about 135,200 tons, a decrease of 13,900 tons from the previous trading day. Today, the SMM central China price was at a discount of about 170 yuan/ton against the 2404 contract, an increase of 10 yuan/ton from the previous trading day. The average spot price was 19,670 yuan/ton. The mainstream spot transactions were at a discount of 10 yuan/ton to a premium of about 10 yuan/ton for the SMM central China price in the early trading.
Overall, according to SMM data, the aluminum inventory was 847,000 tons on Wednesday, a decrease of 18,000 tons from last Thursday and 11,000 tons from Monday. Downstream consumption is gradually recovering. In March, the comprehensive PMI index of the aluminum processing industry was above 50%. In April, the operating rate of downstream enterprises is still expected to rebound to a certain extent. Sufficient spot supply and high aluminum prices put a certain pressure on spot premiums and discounts. In the short term, spot discounts may persist. We need to continue to pay attention to imported primary aluminum and aluminum production resumption in Yunnan.