SMM July 1 news:
In morning trading, the operating center of the SHFE aluminum 2606 contract was lower than the same period on the previous trading day. Affected by low aluminum prices, some sellers continued to hold back from selling. Downstream just-in-time procurement demand, combined with bearish sentiment, kept overall market procurement sentiment sluggish. Mainstream transactions were at a premium of 10 yuan/mt to 20 yuan/mt against the SHFE aluminum July contract. The east China market shipment sentiment index was 2.83 today, down 0.05 DoD; the procurement sentiment index was 2.73, down 0.04 DoD.
The central China market transaction atmosphere remained sluggish today. The futures aluminum market continued its downward trend, fostering significant price drop fears among downstream processing enterprises, with only some firms not locked into long-term contracts making just-in-time procurement. With the excessive drop in aluminum prices, suppliers' willingness to sell also remained low, and their willingness to hold prices firm was weak. The actual transaction price range in central China ultimately centered around a discount of 30-50 yuan/mt against the SHFE aluminum July contract. The central China market shipment sentiment index was 2.86 today, down 0.01 DoD; the procurement sentiment index was 2.10, down 0.02 DoD.
On the inventory front, aluminum ingot inventories in major consumption regions fell by 1,550 mt DoD today, with destocking mainly occurring in Guangdong and Wuxi.
