The most-traded SHFE aluminum contract rose in early trading today and then fell back. Today, the holders in east China mainly shipped goods amid moderate transaction. According to SMM statistics, today the inventory of aluminum ingots in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) was 281,500 mt , a decrease of 4,300 tons from the previous trading day. There is a demand for stocking before the holiday, and the inventory continuously dropped. Today, the SMM A00 aluminum price is about 50 yuan/ton discount against the 2405 contract, which is the same as the previous trading day. The spot price was recorded at 20,310 yuan/ton. In the second trading period, the price center moved slightly upward, and the holders mainly adjusted the price and shipped goods based on the market. Today, the mainstream transactions in east China are about discount of 10 yuan/mt to premium of 10 yuan/ton over the SMMA00 aluminum price.
Today, spot transactions in the central China were moderate, mainly driven by downstream rigid demand purchases and pre-holiday stocking, but aluminum prices rebounded, and there were differences in the market's willingness to accept goods. The spot discount in the central China widened slightly. According to SMM statistics, today the inventory of aluminum ingots in Gongyi was about 112,900 mt, a decrease of 4,000 tons from the previous trading day. Today, the SMM central China price was at a discount of about 110 yuan/ton against the 2405 contract, a decrease of 10 yuan/ton from the previous trading day. The average spot price was recorded at 20,250 yuan/ton. In the early trading, the mainstream spot transactions were at a discount of 20 yuan/ton to a premium of about 10 yuan/ton over SMM central China price.
Overall, according to SMM data, the inventory of aluminum was 807,000 tons on Monday, a decrease of 37,000 tons from last Thursday and 24,000 tons from Monday. The high price of aluminum suppressed the destocking of aluminum ingots to a certain extent, but with the Labour Day holiday approaching, there is a demand for pre-holiday stocking in the downstream, and the shipment has improved. The inventory of aluminum ingots in the three places dropped one after another.
On the supply, imports suffered substantial losses, the import window has been closed, and the impact of imported supplies has weakened; on the demand, it is in the traditional peak season, but high aluminum prices suppressed the enthusiasm of downstream purchases and stocking in the short term. The discount of aluminum spot may remain at a discount in the short term, but driven by the expectation of destocking, the discounts may persist.