Social inventory saw a slight buildup after the holiday, with a slight improvement observed in central China today [SMM Spot Aluminum Midday Review]

SMM, June 3 News

SHFE aluminum fell rapidly in the morning session today, mainly due to the bearish impact of tariff increases and inventory buildup in social inventory after the holiday. Bears increased their positions. From the perspective of spot market performance, spot aluminum in east China performed ordinarily, while the central China market performed better.

Specifically, trading in east China was ordinary today. Traders were concerned about the subsequent market and increased their shipments. Early in the morning, the market traded at SMM +10 to the average price, and then gradually shifted to trading at the average price to a small discount. Market transactions were mainly at -10 to the SMM average price. Today, SMM A00 aluminum was quoted at 20,120 yuan/mt, down 170 yuan/mt from the previous trading day, with a premium of 110 against the June contract, unchanged from the previous trading day.

The central China market showed slight improvement today. Transactions in the central China market were concentrated on shipments at +10 to the SMM central China average price. SMM central China A00 aluminum was recorded at 20,070 yuan/mt against the SHFE aluminum 2506 contract, down 160 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was 50 yuan/mt, unchanged from the previous trading day, with a premium of 60 against the 2506 contract.

In terms of inventory, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory was 519,000 mt on June 3, an inventory buildup of 8,000 mt compared to before the holiday. In the short term, the lower arrival of goods is conducive to maintaining the premium. Subsequent attention should be paid to changes in demand.

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