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In the central China market, aluminum prices remained at high levels recently. Downstream processing enterprises saw an accumulation of finished product inventories, while raw material restocking remained cautious. Spot premiums in the market were under pressure, showing no significant improvement. SMM central China A00 aluminum ingot prices were recorded at 20,690 yuan/mt, down 90 yuan/mt from the previous trading day, with the Henan-Shanghai price spread at minus 130 yuan/mt. Actual transactions in the market were concluded at around SMM central China prices minus 10 yuan/mt.
In terms of inventory, SMM's weekly aluminum social inventory stood at 862,000 mt, flat WoW. Recently, aluminum prices have remained at high levels around 20,800 yuan/mt. Downstream processing enterprises faced inventory pressure due to slower cargo pick-up by end-users, with raw material inventories mainly driven by just-in-time transactions. Outflows from warehouses in major consumption areas declined. As aluminum prices moved lower, trading activity slightly improved during the day. Attention will be on downstream restocking after delivery, with spot premiums expected to return to higher levels.
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