Aluminum Prices Stay High, Destocking Range Narrows in Three Regions [SMM Spot Aluminum Midday Review]

SMM July 31 news:

SHFE aluminum 2608 contract traded near yesterday’s center in the morning session. Downstream users held back due to high aluminum prices, but just-in-time procurement emerged given the Friday restocking cycle. Persistent destocking also made some suppliers reluctant to sell at lower prices, though overall transaction prices shifted lower. Today, spot premiums for SHFE aluminum ranged mainly between 8-20 yuan/mt and flat against the August contract. In east China, the shipment sentiment index was 3.09, down 0.04 MoM, and the procurement sentiment index was 2.84, down 0.04 MoM.

As SHFE aluminum posted a three-day winning streak approaching the Friday restocking cycle, downstream processing enterprises in central China showed markedly weaker stockpiling appetite; they mostly focused on just-in-time procurement and digesting inventories, with only a few enterprises considering stockpiling. Traders mostly took advantage of low premiums to purchase, but overall market activity remained sluggish. The final transaction price range in central China settled at a discount of 160-180 yuan/mt against the SHFE aluminum August contract. The shipment sentiment index in central China was 3.2, up 0.02 MoM, and the procurement sentiment index was 2.83, up 0.03 MoM.

On the inventory front, aluminum ingot inventory in major consumption regions fell by 1,000 mt MoM, with destocking seen only in Gongyi.