Market Concentrated Shipments and Trading Sentiment Pull Back, East China Spot Premiums/Discounts Weaken [SMM Spot Aluminum Midday Review]

SMM November 25 News:

SHFE aluminum December contract mainly fluctuated upward in the morning session. In east China, holders offered near the SMM average price at the opening, but with concentrated selling and ample spot supply in the market, buyers preferred discounted transactions. Actual transaction prices were at a discount of around 10 yuan/mt against the SMM average. As futures rose further, buyers' purchase willingness expanded the discount range. Today, the east China market selling sentiment index was 3.02, down 0.07 MoM; the purchasing sentiment index was 2.95, down 0.11 MoM. SMM A00 aluminum closed at 21,440 yuan/mt, up 80 yuan/mt from the previous trading day, at a discount of 10 yuan/mt against the December contract, down 10 yuan/mt from the previous trading day.

In central China, trading remained sluggish today. Traders mainly sold spot cargo for hedging purposes, while downstream enterprises showed low purchase willingness. Traders found it difficult to hold prices firm, and offers continued to decline. Final transaction prices kept falling from pre-opening levels, ranging from parity to a discount of 20 yuan/mt against the central China price. Today, the central China market selling sentiment index was 2.95, down 0.02 MoM; the purchasing sentiment index was 2.90, down 0.02 MoM. SMM central China aluminum closed at 21,330 yuan/mt, up 70 yuan/mt from the previous trading day, at a discount of 120 yuan/mt against the December contract, down 20 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -110 yuan/mt, down 10 yuan/mt from the previous trading day.

Inventory side, aluminum ingot inventories in major consumption areas totaled 459,500 mt on Tuesday, destocking 1,500 mt WoW.Tuesday's market sentiment further weakened. Buyers mainly made just-in-time procurement, while sellers actively offloaded cargo. The off-season atmosphere gradually deepened, and spot premiums/discounts are expected to fluctuate in the short term.