East China Gongyi Market Weakened, Premiums Under Pressure [SMM Spot Aluminum Midday Review]

SMM June 2 update:

During the morning session, the SHFE aluminum 2606 contract fluctuated upward, with the overall price center rising compared to the previous trading day. Affected by higher aluminum prices, downstream purchase sentiment weakened significantly, and selling sentiment was notably higher than purchase sentiment today. Mainstream spot quotes in the market were at SMMA00 minus 10 yuan/mt to the average price. Today, the east China market shipment sentiment index was 3.01, up 0.07 MoM; the purchase sentiment index was 2.83, down 0.08 MoM.

Entering the June off-season, downstream processing enterprises in central China saw weak orders. Combined with rising aluminum prices, purchase willingness was low. However, suppliers tended to sell in large volumes when aluminum prices rebounded, with poor willingness to hold prices firm. Overall market transaction atmosphere remained sluggish, and quotes continued to decline. The actual transaction price range in the central China market ultimately settled at a discount of 190-210 yuan/mt against the SHFE aluminum 06 contract. Today, the central China market shipment sentiment index was 2.88, up 0.03 MoM; the purchase sentiment index was 2.18, down 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas rose 0.6 MoM today, with the inventory buildup mainly originating from Wuxi and Gongyi.