Most-traded SHFE aluminum rebounded after a drop, and spot aluminum discounts may persist [SMM spot aluminum midday review]

Published: Apr 29, 2024 16:23

Source: SMM

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The most-traded SHFE aluminum fell and then rebounded in early trading today.

The most-traded SHFE aluminum fell and then rebounded in early trading today. Today, the holders in east China mainly shipped goods, and the overall transaction was moderate. According to SMM statistics, today the aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) is 274,800 tons, a decrease of 2,600 tons from the previous trading day. Under the combined influence of continuous inventory destocking and high aluminum prices, the spot premiums and discounts are mainly stable. Today, the SMM A00 aluminum price is at a discount of about 50 yuan/ton against 2405 contract, which is the same as the previous trading day. The spot price was recorded at 20,590 yuan/ton. In the second trading period, the prices were mainly volatile, and the holders mainly adjusted prices and shipped goods according to the market. Today, the mainstream transactions in east China are at a discount of 20 yuan/ton to a premium of about 10 yuan/ton to the SMMA00 aluminum price.
Today's spot transactions in central China were moderate, and downstream purchases were mainly based on rigid demand. According to SMM statistics, the inventory of aluminum ingots in Gongy is about 111,200 tons today, a decrease of 3,500 tons from the previous trading day. Today, the SMM central China price is about 120 yuan/ton lower than the 2405 contract, down 10 yuan/ton from the previous trading day. The average spot price is 20,520 yuan/ton. The mainstream spot transaction is about a discount of 10 yuan/ton to a premium of 10 yuan/ton to the SMM central China price in the early trading.
Overall, according to SMM data, aluminum inventories were 791,000 tons on Monday, a decrease of 16,000 tons from last Thursday. High aluminum price somehow suppressed the destocking, but as Labour Day holiday is approaching, there is still some pre-holiday stocking demand in the downstream, and the destocking trend of aluminum ingots continued over the weekend. On the supply, imports continued to suffer substantial losses, the import window was closed, and the impact of imported supplies weakened; on the demand, it is currently in the traditional peak season, but high aluminum prices somehow suppressed the enthusiasm of downstream purchases and stocking, and the spot discounts of aluminum may persist in the short term.

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