The most-traded SHFE aluminum contract surged and then fell, with the highest price reaching 21,565 yuan/mt. The market was highly volatile, and buyers were relatively cautious. In the east China, sellers focused on shipments, while downstream buyers restocked only as needed, resulting in weak transactions. According to SMM statistics, aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou, Haian, etc.) was 262,800 mt today, down by 2,100 mt from the previous trading day. Today, the SMM A00 spot aluminum price was at a discount of about 120 yuan/mt to the 2406 contract, down by 20 yuan/mt from the previous trading day. The spot price was recorded at 20,760 yuan/mt. During the second trading session, the market moved sideways. In the east China, mainstream transactions were at a discount of 20 yuan/mt to a premium of 10 yuan/mt to the SMM A00 spot aluminum price.
Today's spot transactions in central China were relatively poor, with downstream demand mainly for essential purchases. Inventory remained stable, and the discount widened again. According to SMM statistics, the aluminum ingot inventory in Gongyi today is about 92,300 mt, a decrease of 100 mt compared to the previous trading day. Today, the SMM central China price for the 2406 contract is at a discount of around 300 yuan/mt, down 50 yuan/mt from the previous trading day. The average spot price recorded 20,580 yuan/mt, with mainstream spot transactions in the early session ranging from a discount of 20 yuan/mt to a premium of 10 yuan/mt over the SMM central China price.
Overall, according to SMM data, aluminium inventory was 759,000 mt on Monday, an increase of 12,000 mt from a week ago. On the supply side, the import window for primary aluminium remained closed, with import losses still exceeding 1,000 yuan per mt, resulting in limited actual inflow of imported sources into the domestic market. Domestic aluminium smelters continue to maintain a high proportion of aluminum liquid, with limited increase in ingot production. However, due to high aluminium prices, downstream restocking enthusiasm is low, leading to high inventory of aluminum ingots. In the short term, spot discounts are under pressure, and spot discounts may persist.
