SMM January 15 news:
The SHFE aluminum 2602 contract fluctuated downward in the morning session, with the price center lower than the previous trading day. Affected by the decline in aluminum prices, overall downstream purchasing sentiment recovered, and mainstream transaction prices mainly ranged from a discount of 20 yuan/mt to a discount of 10 yuan/mt. Today, the east China market selling sentiment index was 2.56, up 0.12 WoW; the purchasing sentiment index was 2.44, up 0.15 WoW. SMM A00 aluminum closed at 24,190 yuan/mt, down 480 yuan/mt from the previous trading day, at a discount of 130 yuan/mt against the 2601 contract, down 50 yuan/mt from the previous trading day; at a discount of 190 yuan/mt against the 2602 contract.
Today, aluminum prices pulled back, and trading sentiment in the central China market continued to recover. Large players entered the market to purchase, driving an increase in trading volume and higher premiums/discounts. Suppliers' willingness to sell improved, and market activity saw some improvement. Ultimately, actual transaction prices in the central China market ranged from a discount of 10 yuan/mt to a premium of 10 yuan/mt against the central China price. Today, the central China market selling sentiment index was 2.60, down 0.01 WoW; the purchasing sentiment index was 1.95, up 0.44 WoW. SMM central China closed at 24,030 yuan/mt, down 480 yuan/mt from the previous trading day, at a discount of 290 yuan/mt against the 2601 contract, down 50 yuan/mt from the previous trading day; at a discount of 350 yuan/mt against the 2602 contract. The Henan-Shanghai price spread was -160 yuan/mt, flat from the previous trading day.
Inventory side, aluminum ingot inventory in major consumption areas increased by 1,500 mt WoW on Wednesday. The main location for inventory buildup was Wuxi, while Guangdong showed a destocking trend. In the short term, high aluminum prices may continue to suppress end-use demand, aluminum ingots still face inventory buildup risks, and spot premiums/discounts are expected to remain under pressure.
