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[SMM Analysis] several reasons for the active transaction of Aluminum ingots in East China this week
Jul 26,2019 18:20CST
translation
Source:SMM
Back this week, four consecutive days of transactions are more active, only a little worse on Friday, the reason SMM believes that there are the following main points.
The content below was translated by Tencent automatically for reference.

SMM described in the last issue of the aluminum weekly newspaper that trading was better only at the beginning of the week and near the weekend, and the other days were mediocre. But back this week, 4 consecutive days of transactions are more active, only a little worse on Friday, the reason SMM believes that there are the following main points.

1) the price of aluminum has fallen, stimulating the receipt of goods. The price of spot aluminum ingots in East China fell in the first three days, falling to about 13790 yuan / ton from around 13850 yuan / ton on Monday, and the price of 13790 yuan / ton was almost in the low spot price of nearly 10 days. Aluminum prices are lower, whether middlemen, traders or downstream willingness to pick up goods have been significantly improved, and downstream last week due to fear of high shipments is not much, a backlog of some aluminum ingot planned procurement volume, this week procurement enthusiasm has increased significantly.

2) the reason for issuing the ticket. Near the end of the month, it is precisely enterprises facing the cycle of financial settlement, there is a certain demand for the current month, so they will tend to buy the current month tickets and actively receive the goods.

3) the arrival of goods is reduced, and some traders are willing to hoard goods. The recent decline in the arrival of goods, this can be seen from the SMM inventory data, SMM and East China aluminum ingot traders learned in the process of exchange, the previous days of tight spot, strong prices make some traders tend to hoard a small amount of goods in preparation for their own retro or advantage shipment.

The future SMM believes that the spot price of aluminum ingots will remain stable at 20-20 yuan / ton in the short term, but after August, with the further weakening of downstream consumption, the actual transaction situation is difficult to be optimistic.

Price forecast

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