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In the central China market, the aluminum price center pulled back earlier, leading to an increase in downstream just-in-time procurement volume. Coupled with a decrease in incoming cargo, inventory showed destocking. However, after the aluminum price center returned above 20,800 yuan/mt, downstream consumption weakened, and traders continuously adjusted premiums for shipments, with discounts ranging from 20 to 30 yuan/mt against SMM central China, indicating intense cut-throat competition in premiums. SMM central China A00 aluminum was recorded at 20,660 yuan/mt against the SHFE aluminum 2507 contract, down 50 yuan/mt from the previous trading day. The price spread between central China and SHFE was -130 yuan/mt, widening by 20 yuan/mt from the previous trading day, with a discount of 200 yuan/mt against the 2507 contract.
On the inventory side, SMM's daily inventory was recorded at 324,000 mt, up 5,000 mt MoM. Earlier, the accumulation of some cargo at source stations led to a decrease in incoming inventory, coupled with a slight improvement in downstream consumption due to the earlier pullback in the aluminum price center, resulting in a phased destocking of weekly inventory. Under the off-season atmosphere, the station issues were gradually resolved, and daily inventory began to build up again, with spot premiums continuing to face pressure.
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