In the morning session today, the center of SHFE aluminum prices continued to move downward, falling to around 19,950 yuan/mt below the daily average line. In terms of spot market performance, east China still focused on selling. After the center of aluminum prices moved downward, market trading improved slightly, but downstream restocking remained weak. The market saw transactions at a discount of 10 yuan/mt against the SMMA00 average price. SMMA00 was on par with the SHFE aluminum 2505 contract, unchanged from the previous trading day. SMM A00 aluminum ingot was recorded at 19,950 yuan/mt, down 120 yuan/mt from the previous trading day.
In the central China market, after the market discount widened, hedging traders were relatively active in purchases. Coupled with downstream pre-holiday restocking demand, the market premium gradually improved. SMM central China A00 was recorded at 19,870 yuan/mt against the SHFE aluminum 2505 contract, down 110 yuan/mt from the previous trading day. The price spread between central China and Shanghai was -80 yuan/mt. Actual market transactions were on par with or at a discount of 10 yuan/mt against the SMM central China price, and at a discount of 80 yuan/mt against the 2505 contract.
On the inventory side, SMM weekly aluminum social inventory was recorded at 643,000 mt, a decrease of 15,000 mt. It is expected that the downward space for premiums before the holiday will be relatively limited. However, after the holiday, as May approaches, downstream consumption will weaken to varying degrees. It is expected that the inventory drawdown speed will slow down, and premiums will struggle to rise.
