Aluminum Prices Continued to Decline, Suppliers Showed Strong Willingness to Hold Prices Firm [SMM Spot Aluminum Midday Review]

SMM April 21 update:

SHFE aluminum 2605 fluctuated downward in early trading. End-users mainly made just-in-time procurement, while traders' buying sentiment was relatively positive, influenced by declining aluminum prices and widening premiums. Mainstream transactions centered around SMM A00 aluminum at -10 yuan/mt to +10 yuan/mt. East China shipment sentiment index was 3.36 today, down 0.04 MoM; purchasing sentiment index was 3.16, up 0.1 MoM.

Affected by recent reductions in invoicing quotas for central China traders, some traders were concerned about insufficient invoicing quotas. The market trading atmosphere was slightly subdued today, with both shipment and buying sentiment declining slightly. Buyers preferred to purchase at lower prices, but suppliers held prices firm, and market prices ultimately rebounded slightly after weakening. Transaction prices in central China ranged from parity to a premium of 20 yuan above the central China price. Central China shipment sentiment index was 2.83 today, down 0.02 MoM; purchasing sentiment index was 2.36, down 0.03 MoM.

Inventory side, aluminum ingot inventory in major consumption areas increased by 5,500 mt MoM today, with inventory buildup mainly in Gongyi and Guangdong.