Aluminum prices only edged lower slightly, actual transaction sentiment was weak, and inventories increased in many regions [SMM Aluminum Spot Midday Review]

SMM August 3:

In early trading, the center of the SHFE aluminum 2608 contract shifted lower from the previous trading day, but purchasing sentiment in the spot market did not improve significantly. The transaction center was at a discount of 20 yuan/mt to parity against the SHFE aluminum 2608 contract, with some downstream bids noticeably at a discount of 20 yuan/mt. The selling sentiment index in east China today was 3.07, down 0.01 DoD; the buying sentiment index was 2.93, up 0.06 DoD.

After the opening, SHFE aluminum futures saw a slight correction. Traders in the central China market had the intention to hold prices firm, but weak purchase willingness from downstream processing enterprises suppressed overall market transactions. Only hedging traders intended to purchase in large quantities at low discounts to widen price spreads for profit. Market quotations edged up, but remained at relatively low levels. The final transaction price range in the central China market was around a discount of 170-190 yuan/mt against the SHFE aluminum 08 contract. The selling sentiment index in the central China market today was 3.20, unchanged DoD; the buying sentiment index was 2.85, up 0.02 DoD.

In terms of inventory, aluminum ingot inventory in major consuming areas rose 9,000 mt DoD today, with only Guangdong showing destocking.