Aluminum futures saw a slight correction, and the market trading atmosphere was mainly sluggish [SMM Spot Aluminum Midday Review]

SMM, June 29:

In early trading, the SHFE aluminum 2606 contract's center traded higher than the same period in the previous trading session. Driven by the rise in aluminum prices, overall market buying sentiment declined today. Some warrant cargoes flowed out of the market, with ample overall circulating supply. Mainstream transactions were at discounts of 10-0 yuan/mt against the SHFE aluminum 07 contract. The east China selling sentiment index was 3.18 today, up 0.03 MoM; the purchasing sentiment index was 2.86, down 0.14 MoM.

Today, aluminum futures saw a slight correction, with trading sentiment in central China being predominantly sluggish. Downstream processing enterprises exhibited low buying sentiment, and with traders recently releasing large volumes of low-priced warrant cargoes, market supply was abundant, leading suppliers to quote prices in a price-collapse manner for shipments, with poor willingness to hold prices firm. Ultimately, the actual transaction price range in central China centered around discounts of 20-50 yuan/mt against the SHFE aluminum 07 contract, with a weakening trend in prices. The central China selling sentiment index was 2.91 today, up 0.01 MoM; the purchasing sentiment index was 2.13, down 0.01 MoM.

Inventory side, aluminum ingot inventories in major consumption regions fell 2.4 MoM today, with all three regions showing destocking trends.