SMM, September 18:
Intraday, the SHFE aluminum 2610 contract price moved higher compared with the previous trading day, slightly pressuring spot premiums. Downstream purchasing sentiment was mixed, with some downstream players already stockpiling while others continued to push for lower prices. Today, SMM A00 aluminum ingot spot transactions were concluded between parity and a premium of 20 yuan/mt against the SHFE aluminum contract.
In the night session yesterday, aluminum futures rallied again. Although it was the Friday stockpiling cycle, high aluminum prices dampened purchasing sentiment among downstream processing enterprises in the central China market, and transactions were relatively sluggish. Meanwhile, large suppliers tended to deliver long-term contracts ahead of schedule to avoid low premiums, showing a strong willingness to hold prices firm, resulting in notable differences between quotes from large and small suppliers. Ultimately, actual transaction prices in the central China market were centered around a discount of 60-90 yuan/mt against the SHFE aluminum October contract.
SMM daily aluminum ingot inventory data across the three regions showed destocking of 9,000 mt, with all three regions posting declines.
