Aluminum Prices Fluctuate Sharply, Strong Wait-and-See Sentiment in the Market [SMM Spot Aluminum Midday Review]

SMM, March 9:

In the morning session, SHFE aluminum 2603 rose and then fell, with the price center significantly higher than the previous trading day. Today, affected by sharp futures fluctuations, the market showed a strong wait-and-see sentiment, and buying sentiment weakened. Mainstream quotations and transaction prices were concentrated at a discount of 20 yuan/mt to the average price. The east China market shipments sentiment index was 3.22, up 0.11 MoM; the buying sentiment index was 2.49, down 0.27 MoM.

Aluminum prices rebounded sharply, while trading activity in the central China market was weak. Traders and downstream processing enterprises mostly stayed on the sidelines, with relatively subdued buying sentiment; suppliers also showed weak willingness to hold prices firm and tended to ship an appropriate volume on price strength. Ultimately, overall transaction prices in central China were concentrated from parity with the central China price to a discount of 30 yuan/mt to the central China price, and the continued downward trend was not significant. The central China market shipments sentiment index was 2.7, up 0.04 MoM; the buying sentiment index was 2.4, down 0.01 MoM.

Inventory: Today, aluminum ingot inventory in major consumption areas increased by 11,000 mt MoM, with the inventory buildup mainly coming from Wuxi and Guangdong. In the short term, aluminum ingots continued to see seasonal inventory buildup after the Chinese New Year; influenced by bullish sentiment, premiums were expected to remain on a narrowing trend.