Minor destocking provided insufficient support for prices, with suppliers in many regions standing firm on quotes [SMM Spot Aluminum Midday Review]

SMM March 24 – SHFE aluminum fluctuated today. The slight destocking of domestic social inventory provided insufficient support for price increases. In the morning, SHFE aluminum mainly oscillated, with suppliers standing firm on quotes. Market transactions were at a small premium to the average price, and trading was moderate due to the pullback in absolute prices. Specifically, in east China, traders stood firm on quotes, with deals made around SMM A00 average or +10. Today, SMM A00 was at a discount of 30 yuan/mt against the SHFE 2504 contract, and SMM A00 aluminum ingot was recorded at 20,660 yuan/mt, down 1,300 yuan/mt from the previous trading day. In the central China market, transactions were moderate. The futures market declined, and suppliers held firm on quotes, with deals made at parity to +10. However, downstream purchase willingness showed no significant feedback, and the market mainly purchased as needed during the long-term contract delivery period. SMM central China A00 was recorded at 20,560 yuan/mt against the SHFE 2504 contract, down 1,100 yuan/mt from the previous trading day, with the price spread between central China and Shanghai at -100 yuan/mt. In terms of inventory, according to SMM's domestic aluminum ingot social inventory, on March 24, the inventory in major domestic consumption areas was 827,000 mt, down 7,000 mt MoM. In the short term, the peak season of "Golden March, Silver April" and the rush for PV installations are expected to stimulate demand, leading to a continued destocking trend. Aluminum prices are more likely to rise than fall, but due to high aluminum prices, the spot market faces resistance in increasing premiums. Data source: SMM 》Order to view SMM metal spot historical prices