Downstream Pre-Holiday Stockpiling, Market Procurement Sentiment Recovered [SMM Spot Aluminum Midday Review]

SMM April 28:

SHFE aluminum 2605 fluctuated downward in early trading. Influenced by pre-holiday restocking, invoice shortages, and the sharp decline in aluminum prices, overall buyer purchasing sentiment was strong. Mainstream transactions for cargoes with invoices dated this month in the market centered around SMM A00 aluminum average price to +20 yuan/mt. The shipment sentiment index in east China was 3.01 today, down 0.31 MoM; the procurement sentiment index was 3.58, up 0.29 MoM.

In central China, downstream processing enterprises showed improved stockpiling sentiment, but invoicing quotas declined. Traders' concerns over whether invoices could be issued on schedule suppressed overall market transactions. Procurement sentiment edged down slightly from yesterday, but traders showed strong willingness to hold prices firm, preventing prices from continuing to decline. The actual transaction price range in central China ultimately centered around the central China price plus 10 yuan to minus 10 yuan. The shipment sentiment index in central China was 2.82 today, down 0.01 MoM; the procurement sentiment index was 2.33, down 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas fell 0.65 MoM today, with all three regions showing a destocking trend.