Spot Aluminum Prices Fluctuate Downward, Market Purchase Sentiment Recovers [SMM Spot Aluminum Midday Review]

SMM October 28 News:

SHFE aluminum mainly fluctuated downward in the morning session, with its center pulling back and hovering around 21,190 yuan/mt. In east China, the absolute price remained high, but spot discounts dampened traders' selling enthusiasm. Actual transactions were mostly at parity with the SMM average price. The east China market selling sentiment index was 2.86, up 0.01 WoW; the purchasing sentiment index was 2.82, up 0.03 WoW. Today, SMM A00 aluminum was quoted at 21,160 yuan/mt, flat from the previous trading day, at a discount of about 40 yuan/mt against the 2511 contract, also flat from the previous day.

In central China, the absolute price did not increase further, and downstream buyers' restocking sentiment improved slightly, though purchases were still made in batches. Actual transactions were mainly around parity with the SMM average price. The central China market selling sentiment index was 2.88, up 0.01 WoW; the purchasing sentiment index was 2.84, up 0.01 WoW. SMM central China A00 aluminum was recorded at 21,030 yuan/mt, flat from the previous trading day, at a discount of 170 yuan/mt against the November contract, flat from the previous day. The price spread between Henan and Shanghai was -130 yuan/mt, unchanged from the previous day.

Inventory side, aluminum ingot inventories in major consumption areas totaled 470,500 mt on Tuesday, with an inventory buildup of 3,500 mt WoW. In the short term, high absolute aluminum prices, coupled with a slight inventory rebound, are expected to keep spot premiums/discounts under pressure.