Aluminum Prices Continue to Rise, Spot Aluminum Procurement Sentiment Continues to Cool [SMM Aluminum Spot Midday Comment]

SMM July 30:

In early trading, the SHFE aluminum 2608 contract moved at a center higher than the same period of the previous trading day. The rise in aluminum prices significantly dampened market purchase willingness, and some suppliers quoted near parity against the SHFE aluminum 2608 contract during the day, with market acceptance remaining weak. Mainstream transaction prices ranged mainly from a discount of 10 yuan/mt to parity against the SHFE August contract. The shipment sentiment index in east China was 3.13, down 0.03 day-on-day, and the purchase sentiment index was 2.9, down 0.1 day-on-day.

SHFE aluminum futures rose again, keeping trading sentiment in central China sluggish. Suppliers tended to sell aggressively at high prices, leading to ample spot supply. However, downstream processing enterprises showed low purchase willingness, with only a few traders buying and stockpiling when discounts were narrow. Ultimately, actual transaction prices in central China were in the range of a discount of 120-160 yuan/mt against the SHFE August contract. The shipment sentiment index in central China was 3.18, up 0.06 day-on-day, and the purchase sentiment index was 2.8, down 0.02 day-on-day.

On the inventory front, aluminum ingot inventory in major consumption areas fell by 15,000 mt day-on-day today, with Guangdong, Wuxi, and Gongyi all seeing destocking.