Buying Sentiment Recovered Slightly from the Previous Day but Remained Weak [SMM Spot Aluminum Midday Review]

SMM May 8 update:

During the morning session, the SHFE aluminum 2605 contract fluctuated downward, with the overall price center rising compared to the previous trading day. Current invoicing constraints led to a contraction in market trade shipments. Today, downstream buyers maintained a strong wait-and-see sentiment, with purchase willingness remaining at a relatively weak level. Dragged by lackluster spot buying, mainstream transactions were concentrated around SMM A00 aluminum minus 10 yuan/mt to the average price. Today, the east China market shipment sentiment index was 2.74, up 0.08 MoM; the purchase sentiment index was 2.66, up 0.06 MoM.

Today, futures aluminum prices saw a slight correction. In the central China market, the sentiment of accepting price increases but not decreases was evident. Overall buying sentiment recovered slightly compared to the previous day, but some suppliers held prices firm and held back from selling, and affected by invoice shortages, shipment enthusiasm was low, with the trading atmosphere remaining sluggish. Ultimately, actual transaction prices in the central China market ranged between parity with the central China price and a premium of 10 yuan above the central China price, with fluctuations being relatively small. Today, the central China market shipment sentiment index was 2.81, down 0.01 MoM; the purchase sentiment index was 2.28, up 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas fell 1.1 MoM today, with all three regions showing a destocking trend.