Holiday Atmosphere Emerging, Spot Market Is Expected to Weaken [SMM Spot Aluminum Midday Review]

This morning, the SHFE aluminum center fluctuated around the daily moving average of 19,750 yuan/mt. Specifically, in the east China market, suppliers increased their selling enthusiasm due to weaker expectations for spot premiums and discounts in the future spot market, while spot premiums remained stable. Today, SMM A00 aluminum recorded a discount of 20 yuan/mt against the SHFE aluminum 2501 contract, unchanged from the previous trading day. SMM A00 aluminum ingot was recorded at 19,700 yuan/mt, down 30 yuan/mt from the previous trading day.

In the central China market, the holiday atmosphere began to emerge, with some small processing enterprises gradually entering the rhythm of the Chinese New Year holiday, leading to weaker market demand. The Henan-Shanghai price spread widened to a discount of about 90 yuan/mt. SMM central China A00 aluminum recorded 19,610 yuan/mt against the SHFE aluminum 2501 contract, down 40 yuan/mt from the previous trading day, with actual market transactions at parity to a discount of about 10 yuan/mt against SMM central China prices.

Inventory-wise, SMM mainstream aluminum social warehouse inventory was recorded at 490,000 mt, unchanged from last Thursday. Recently, aluminum prices have hovered at low levels. After the previous wave of restocking at low prices, as the off-season deepens, expectations for the spot market have weakened, and premiums and discounts across regions are expected to show a weakening trend.

Data source: SMM

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