SMM June 30:
In early trading, the trading center of the SHFE aluminum 2606 contract was below the same period of the previous trading day. Affected by the decline in aluminum prices, some sellers held back from selling today, and overall selling sentiment weakened. Market buying sentiment was sluggish, and overall buying sentiment in the market declined today. Mainstream transactions were at parity to a premium of 10 yuan/mt against the SHFE aluminum July contract. Today, the shipment sentiment index in east China was 2.88, down 0.29 day-on-day; the purchase sentiment index was 2.76, down 0.10 day-on-day.
The SHFE aluminum futures plummeted today, and the trading atmosphere in the central China market remained sluggish. Downstream processing enterprises showed a pronounced sentiment of rushing to buy amid continuous price rise and holding back amid price downturn, staying mainly on the sidelines. Moreover, as it was the last trading day of June, many processing plants focused on inventory checks and digesting inventories, resulting in low buying interest. With the absolute price having fallen too sharply, suppliers' willingness to sell also decreased. Ultimately, actual transactions in the central China market were at discounts of 20-40 yuan/mt against the SHFE aluminum July contract. Today, the shipment sentiment index in central China was 2.87, down 0.03 day-on-day, and the purchase sentiment index was 2.11, down 0.02 day-on-day.
In terms of inventories, aluminum ingot inventory in major consumption areas fell 0.55 day-on-day today, with destocking mainly seen in Guangdong and Wuxi.
