SMM, June 5:
The SHFE aluminum 2606 contract fluctuated downward in early trading, with its overall price center lower than the previous trading day. Buying sentiment in east China recovered somewhat, influenced by the decline in aluminum prices, while some sellers remained on the sidelines, holding back from selling and raising their offer prices. Mainstream spot transaction prices in the market were at a discount of 100-110 yuan/mt against the SHFE June contract. The east China shipment sentiment index stood at 2.91, down 0.04 MoM, while the purchasing sentiment index was 2.84, up 0.19 MoM.
Futures aluminum prices continued to fall MoM from yesterday, and coupled with a downstream stockpiling demand boost ahead of the weekend, overall buying sentiment in the market picked up. Moreover, with large suppliers offering limited shipments, sellers generally held prices firm and showed significant reluctance to sell, keeping offer prices consistently high. Ultimately, the actual transaction price range in the central China market centered around a discount of 190-200 yuan/mt against the SHFE June contract. The central China shipment sentiment index was 2.86, down 0.01 MoM, while the purchasing sentiment index was 2.22, up 0.02 MoM.
On the inventory front, aluminum ingot inventory in major consumption regions fell 1.15 MoM today, with destocking observed across all three regions.
