Suppliers were active in shipping, and transactions among traders were moderate. [SMM Spot Aluminum Midday Review]

SMM April 24 News

SHFE aluminum fluctuated in the morning session today. The sentiment improved slightly due to news of potential tariff relief between China and the US. The futures market touched a high of 20,000 yuan/mt in the morning, and SHFE aluminum closed at 19,965 yuan/mt in the first trading session. In the spot market, trading in east China and central China was moderate, mainly due to ample supply in the spot market, with suppliers selling more goods, and some traders reported that aluminum plants were actively selling. Specifically, spot premiums in east China pulled back again today, mainly due to sufficient supply. The market initially traded at a discount of 10 yuan/mt against SMM prices, but as traders increased purchases, trading was moderate. SMM A00 aluminum was quoted at 19,980 yuan/mt, up 70 yuan/mt from the previous trading day, with a premium of 10 yuan/mt against the May contract, narrowing by 10 yuan/mt from the previous trading day.

Trading in central China was moderate, with suppliers offloading goods, while downstream purchases were weak. The market mainly traded at a discount of 10 yuan/mt against SMM central China prices in the morning. SMM central China A00 aluminum was recorded at 19,890 yuan/mt against the SHFE aluminum 2505 contract, up 60 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -90 yuan/mt, with actual market transactions at a discount of 10 yuan/mt against SMM central China prices and a discount of 80 yuan/mt against the 2505 contract.

In terms of inventory, according to SMM domestic aluminum ingot inventory data, domestic aluminum ingot inventory in three regions stood at 658,000 mt on April 24, down 15,000 mt from Monday. In the short term, the fundamentals have not shown a significant weakening in demand, providing support for domestic aluminum prices. However, the macro environment has slightly eased, driving the futures market higher. With the domestic market approaching the transition between peak and off-peak seasons and ample supply in the market, spot aluminum premiums and discounts are expected to drop back slightly in the short term.

Data source: SMM

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