Most-traded SHFE aluminum contract rebounded after bottoming out. The spot supply is sufficient, with premiums and discounts under pressure [SMM Spot Aluminum]

In early trading today, the most-traded SHFE aluminum contract rebounded after bottoming out, with the center shifting downwards. Today, holders in east China mainly shipped goods amid moderate transactions. Aluminum prices fell again after breaking through 19,000 yuan/mt yesterday. According to SMM statistics, today's aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou, Haian, etc.) is 237,900 tons, a decrease of 1,900 tons from previous trading day. The supply of goods is sufficient, pressuring premiums and discounts. Today, the SMM A00 aluminum price has a discount of 40 yuan/ton against the 2403 contract, down 10 yuan/ton. The spot price recorded 18,940 yuan/ton. During the second trading period, the center moved upward. The holders followed suit and adjusted prices for shipments. Today, the mainstream transaction price in east China for SMMA00 aluminum was at a discount of 20 yuan/ton to a premium of 10 yuan/ton.、

Today's spot transactions in the central China were average, and downstream companies purchased only as needed. Aluminum ingot inventory continued to grow amid sufficient supply. Central China spot prices maintained a large discount. According to SMM statistics, today's aluminum ingot inventory in Gongyi is approximately 167,300 tons, down 1,900 tons. Today, the SMM central China has a discount of about 160 yuan/ton against the 2403 contract, down 10 yuan/ton. The average spot price recorded 18,820 yuan/ton. The mainstream spot transaction price has a discount of 10 yuan/ton to a premium of about 10 yuan/ton against SMM central China aluminum price.

Overall, the national aluminum inventory on Monday increased from 27,000 tons last Thursday to 816,000 tons. The increase in inventory slowed down and remained at a low level for the same period in nearly past seven years. However, aluminum ingots are still growing. SMM predicts that domestic aluminum ingot inventory may reach the range of 800,000-900,000 tons in the first half of March. On the supply, according to SMM, an aluminum smelter in Sichuan plans to undergo technical transformation and is expected to complete by the end of the month. The previous operating capacity was about 65,000 tons/year; aluminum smelters in Yunnan will maintain stable production in the short term. On the demand, the production resumption after the holiday boosted the operating rate of aluminum downstream, coupled with improved demand amid traditional peak season, supporting aluminum prices. We need to pay attention to changes in aluminum supply and the production resumption .