Sluggish Trading on the First Day After the Holiday, Premiums Moved Downwards After a Higher Opening [SMM Spot Aluminum Midday Review]

SMM May 6 update:

During the morning session, the SHFE aluminum 2605 contract fluctuated upward, with the overall price center rising compared to the previous trading day. Currently, some sellers had not fully resumed operations, and combined with invoicing constraints, market trading shipments contracted. On the first trading day after the holiday, downstream buyers showed a strong wait-and-see sentiment, and purchase willingness cooled. Dragged by weak spot buying, mainstream transactions concentrated in the range of SMMA00 aluminum -10 yuan/mt to the average price. Today, the east China market shipment sentiment index was 2.67, down 0.08 MoM; the purchase sentiment index was 2.8, down 0.1 MoM.

On the first day after the Labour Day holiday, the central China market saw overall sluggish trading. Concerns among traders and downstream participants over insufficient invoice quotas limited trading volume. Buying sentiment was subdued, but suppliers showed a strong willingness to hold prices firm. At the opening, overall offers stayed high before gradually declining. The invoiced transaction amount on the day was slightly higher than the concentrated invoicing price at month-end. Ultimately, actual transaction prices in the central China market ranged from parity to a premium of 20 yuan relative to the central China price. Today, the central China market shipment sentiment index was 2.83, down 0.01 MoM; the purchase sentiment index was 2.28, down 0.04 MoM.

Inventory side, aluminum ingot inventory in major consumption areas rose 2.05 MoM today, with the inventory buildup mainly originating from Wuxi and Gongyi.