SMM, July 20 -
In early trading, the SHFE aluminum 2606 contract's trading center was higher than the same period of the previous trading day. Affected by supply-side factors for aluminum ingot, some sellers raised their offers. However, due to the off-season, market procurement sentiment remained relatively weak, compounded by ample market circulation. Transaction prices continued to trend lower, with mainstream deals declining from parity against the SHFE 08 contract to a discount of 20 yuan/mt against the SHFE 08 contract. Today, east China's shipment sentiment index was 3.16, up 0.05 DoD; the procurement sentiment index was 2.92, up 0.02 DoD.
Today, aluminum futures were boosted by some market news, but downstream processing enterprises in central China showed subdued procurement sentiment, significantly dampening market transaction mood. However, suppliers demonstrated a strong willingness to hold prices firm, leading to high offers. As absolute prices further rose after the market opened, traders lowered their quotes. Ultimately, the actual transaction price range in central China centered around a discount of 120-150 yuan/mt against the SHFE 08 contract. Today, central China's shipment sentiment index was 3.03, up 0.04 DoD; the procurement sentiment index was 3.00, down 0.03 DoD.
Inventory side, aluminum ingot inventory in major consumption areas fell 0.05 DoD today, with destocking mainly in Guangdong and Wuxi.
