Aluminum Ingot Outflows From Warehouses Perform Well, Spot Market Premiums Remain Firm [SMM Spot Aluminum Midday Review]

The center of SHFE aluminum front-month contract shifted downward, falling below 20,600 yuan/mt. In the spot market, the east China market saw the absolute price center move downward, with improved trading activity in the spot market. Mainstream warehouse inventory showed slight destocking, and spot premiums remained firm. SMM A00 aluminum ingot prices stood at 20,550 yuan/mt, down 50 yuan/mt from the previous trading day, while SMM A00 spot price was at a discount of 40 yuan/mt to the SHFE aluminum 2503 contract, unchanged from the previous trading day.

In the central China market, recent outflows from warehouses in the region increased. SMM daily inventory showed slight destocking, coupled with a continuous slight pullback in aluminum price center and a slight increase in downstream demand. Spot premiums rose slightly during the day. SMM central China A00 aluminum ingot prices stood at 20,450 yuan/mt, down 40 yuan/mt from the previous trading day, with the Henan-Shanghai price spread at -100 yuan/mt, narrowing by 10 yuan/mt. Actual market transactions were on par with SMM central China prices.

Inventory-wise, SMM daily aluminum social inventory recorded 736,400 mt, down 8,500 mt. Entering March, downstream operating rates continued to rebound, inventory outflows improved, spot market trading activity warmed up, and premiums remained firm. The center is expected to gradually move upward in the future.

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