SMM News, July 6:
The SHFE aluminum 2606 contract traded with its center higher than the previous trading day’s corresponding level in the morning session. Pressured by rising aluminum prices, selling sentiment improved from the previous day, but buying sentiment was relatively soft, as some downstream players had limited acceptance of the higher prices. Market liquidity was ample, and mainstream transactions were concluded on par with to a premium of 10 yuan/mt against the SHFE July contract. In east China, the selling sentiment index stood at 3.00, up 0.08 from the previous day; the procurement sentiment index was 2.79, flat from the previous day.
SHFE aluminum futures rebounded, and with it falling on a Monday, the spot market in central China saw subdued trading sentiment. End-use demand was weak, and downstream processing enterprises held a strong bearish outlook, weighing on buying sentiment, while suppliers showed limited willingness to hold prices firm. Ultimately, the actual transaction price range in the central China market centered on a discount of 60-80 yuan/mt against the SHFE July contract, with a persistent downward trend. In central China, the selling sentiment index was 2.90, up 0.01 from the previous day; the procurement sentiment index was 2.11, down 0.01 from the previous day.
Inventory-wise, aluminum ingot inventory in the major consumption regions fell by 0.85 from the previous day, with destocking mainly occurring in Guangdong and Wuxi.
