SMM Al Survey: Transactions Rose on Stock Building before Festival

SHANGHAI, Sept. 14 (SMM) -- The SMM China Aluminum Ingot Trade Index rose for a second week from September 5th to September 9th to 51.7%, above the balance line of 50%, indicating an improving trend. With alleviating capital pressure entering September, downstream processors built up stocks as needed before Chinese Mid-Autumn Festival, which helped improve the aluminum market sentiment.

In order to objectively and accurately show China’s spot aluminum ingot trading market, SMM has surveyed spot aluminum ingot traders from different regions, of different types and scales, based on their total traded volumes, downstream purchase volumes, traders inventories, cash flows and employee numbers etc.

In order to objectively and accurately show China’s spot aluminum ingot trading market, SMM has surveyed spot aluminum ingot traders from different regions, of different types and scales, based on their total traded volumes, downstream purchase volumes, traders inventories, cash flows and employee numbers etc.

The SMM China Aluminum Ingot Trade Index – Transaction Index surged by 14.9 percentage points this week to 48.7%, but still below the balance line of 50%. With alleviating capital pressure entering September, downstream processors built up stocks as needed before Chinese Mid-Autumn Festival, meanwhile, goods holders also lowered their quotations to attract buyers, which in turn added to transaction volumes during the week.

The SMM China Aluminum Ingot Trade Index – Downstream Consumption Index rebounded by 18.8 percentage points to 53.8%, its first time to stand above the 50% balance line since mid June. This was the result of stock building before Chinese Mid-Autumn Festival with alleviated capital pressure at downstream processors.

The SMM China Aluminum Ingot Trade Index – Trader Stock Index slipped a slight 0.2 percentage points to 43.6%, remaining below the 50% balance line. The balanced stock was due to active selling at lower prices by goods holders given uncertainties of future aluminum prices and low buying interest of downstream processors at higher prices.