SMM News on June 24: In the morning session, the center of the SHFE aluminum front-month contract fell to around 20,350 yuan/mt. The futures market pulled back slightly, with an increase in market inquiries. However, actual transactions still revolved around long-term contracts, and the spot market remained sluggish, with transactions concluded at a discount of 10 yuan/mt against SMM prices. Today, SMM A00 aluminum was quoted at 20,540 yuan/mt, down 110 yuan/mt from the previous trading day. It traded at a premium of 150 yuan/mt against the July contract, down 10 yuan/mt from the previous trading day.
In the central China market, amid the off-season atmosphere, production cuts among aluminum processing enterprises have become increasingly frequent. The market primarily revolves around long-term contract transactions, with sporadic spot order transactions. As the aluminum price center fell during the day, just-in-time procurement by processing material enterprises increased slightly, but the volume remained limited. The market concluded transactions at a discount of 20 yuan/mt against the SMM average price. SMM central China A00 aluminum was recorded at 20,360 yuan/mt against the SHFE aluminum 2507 contract, down 110 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -180 yuan/mt, unchanged from the previous trading day, and it traded at a discount of 30 yuan/mt against the 2507 contract.
On the inventory side, SMM's daily inventory was recorded at 328,000 mt, up 4,000 mt MoM. Amid the off-season atmosphere, downstream processing materials enterprises are adjusting their finished product inventories through production cuts. The spot market demand remains sluggish, and premiums will fall further.
