Pressure on inventory fell due to decrease in cargoes in transit, and the premium of south China spot has temporarily stabilized [SMM South China Spot Aluminium]

SHFE aluminum prices were weak overnight, but rose in early trading. Aluminum prices rose slightly today, and inventory pressure has slowed down. The spot premium in south China has stabilized. In the morning, holders raised prices around the average price of -10. Although there were recipients entering the market to purchase goods during the day, the pace of market shipments was not affected. Downstream generally lowered prices to purchase goods, and large buyers also purchased goods at small discounts. The transaction sentiment was stable and the overall transaction was acceptable. Today, the SMM Foshan aluminum price was quoted at a premium of 15 yuan/ton over the 2403 contract, which was unchanged. The average spot price was recorded at 18,880 yuan/ton, an increase of 50 yuan/ton. During the second trading session, SHFE Aluminum prices fluctuated slightly, and holders adjusted accordingly. The recipients replenished low-priced goods in an appropriate amount, and the transaction volume was light. The overall transaction price has a discount of 30 yuan/ton to a premium of 20 yuan/ton for SMM south China aluminum price, and the transaction price is concentrated at 18,850-18,900 yuan/ton.

The Spring Festival holiday ends and it has entered mid-to-late February. Domestic inventory accumulated. South China aluminum prices have repeatedly hit the 19,000 mark but failed. The supply of goods circulating in the domestic market is slightly loose. Inventory pressure restricts spot performance. South China spot premium has been narrowing for more than a week. After the Lantern Festival, as downstream industries such as the south China extruders enter a state of complete resumption of work, it is expected that shipments will return to normal levels in the short term, and market trading volume will rebound to a certain extent WoW. However, due to the recent opening of the import window, spot prices are facing certain pressure. SMM predicts that the premiums and discounts in south China may remain weak at the end of February, and is cautiously optimistic about the upcoming peak seasons. In March, premiums in south China will have a certain amount of upward space, and we need to continue to pay attention to the post-holiday consumption recovery and market transaction performance.