Aluminum prices fell and the willingness to accept goods improved. The spot discounts in east and central China narrowed [SMM Spot Aluminum Midday Review]

In the morning session today, the most-traded SHFE aluminum contract fell and then rebounded, and the prices moved downward. Today, holders in east China mainly shipped goods, and the sentiment of taking delivery improved as the market prices fell, and the spot discount narrowed slightly. According to SMM statistics, today the inventory of aluminum ingots in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) is 277,000 tons, a decrease of 3,000 tons from the previous trading day. Today, the SMM A00 aluminum price is at a discount of about 70 yuan/ton to the 2405 contract, an increase of 10 yuan/ton from the previous trading day. The spot price was recorded at 20,330 yuan/ton. In the second trading period, the prices moved up. Today, the mainstream transactions in east China are 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 the central China improved, with downstream purchases mainly driven by rigid demand, and spot discounts narrowed significantly. According to SMM statistics, the inventory of aluminum ingots in Gongyi today is about 104,800 tons, a decrease of 700 tons from the previous trading day. Today, the SMM central China price is at a discount of about 150 yuan/ton to the 2405 contract, an increase of 40 yuan/ton from the previous trading day. The average spot price is 20,250 yuan/ton. The mainstream spot transactions in the early trading are at a discount of 10 yuan/ton to a premium of about 20 yuan/ton to the SMM central China price.

Overall, according to SMM data, the inventory of aluminum was 794,000 tons on Monday. After Labour Day holiday, the inventory of aluminum ingots increased slightly, an increase of 3,000 tons compared with last Monday. On the supply side, the window for importing primary aluminum remained closed, while the domestic supply of aluminum maintained a growth trend. On the demand side, 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 purchasing, and the spot market may maintain a discount in the short term. We need to pay attention to the inventory of aluminum ingots after Labour Day holiday.