Aluminum Prices Rise, Downstream Purchasing Sentiment Declines, and SHFE Aluminum Discount Widens [SMM Spot Aluminum Midday Review]

SMM, August 4:

In early trading, the SHFE aluminum 2608 contract moved significantly higher from yesterday's center, affecting downstream purchase sentiment. Aluminum price center moved up, and the destocking pace slowed. But as it was the beginning of the month, some enterprises held prices firm. Today, spot premiums for SHFE aluminum were mainly traded at 8-30 yuan/mt to 08-10 yuan/mt. Today, the east China shipment sentiment index was 3.09, up 0.02 MoM; the purchase sentiment index was 2.80, down 0.13 MoM.

Aluminum futures rose again. Today, the central China market remained sluggish, with downstream processing enterprises' purchase willingness staying low, while traders tended to buy in large quantities when discounts were low to earn price spreads, leading to active buying sentiment among traders. In the end, the actual transaction price range in the central China market was around a discount of 190-210 yuan/mt against the SHFE aluminum 08 contract, with a gradually strengthening trend. Today, the central China market shipment sentiment index was 3.20, unchanged MoM; the purchase sentiment index was 2.91, up 0.06 MoM.

In terms of inventory, today the aluminum ingot inventory in major consumption regions decreased by 2,000 mt MoM, with only the Gongyi area seeing inventory buildup.