Metro Mining Sets Q2 Bauxite Shipment Record Despite Operational Challenges

SHFE aluminum futures continued to rebound. In the central China market, downstream processing enterprises and trading firms engaging in both spot and futures markets remained strongly bearish. Spot-futures traders tended to continuously widen the premium - for large-volume purchasing to exploit price spreads. Downstream factories, constrained by end-user orders and finished product inventories, remained reluctant to purchase. Ultimately, the actual transaction price range in the central China market centered around a premium -110-140 yuan/mt against the SHFE aluminum July contract.

[SHFE and LME Aluminum Prices Stabilize and Rebound Synchronously; China Destocking Solidifies Price Bottom Support] Amid intertwined bullish and bearish factors, overseas bullishness from the US dollar and bearishness from supply and geopolitics offset each other. After an earlier excessive decline, LME aluminum’s downward momentum has slowed, and it will mainly consolidate at lows for repair in the short term. Supported by rapid destocking, China’s aluminum price is unlikely to underperform LME aluminum. The SHFE and LME markets may see slight divergence, making a unilaterally weak trend difficult to sustain.

[SMM Aluminum Express] Today, the daily inventory of secondary aluminum alloy ingots in China's mainstream consuming regions was 15,300 mt, down 547 mt from the previous trading day, with Foshan destocking 506 mt.