Aluminum Prices Fluctuate at Highs, End-User Purchase Willingness Remains at a Weak Level [SMM Spot Aluminum Midday Review]

SMM April 15 update:

SHFE aluminum 2604 fluctuated upward in the morning session. Influenced by high aluminum prices, overall selling sentiment in the market was relatively strong, while buying sentiment was suppressed by aluminum prices, and end-user purchase willingness remained at a weak level. Circulating supplies in the market were relatively sufficient, with mainstream transactions concentrated around SMM A00 aluminum at -10 yuan/mt to the average price. The east China market shipment sentiment index was 3.58 today, flat MoM; the procurement sentiment index was 2.9, down 0.04 MoM.

Futures aluminum prices continued to stay high today. Downstream processing enterprises in central China had low purchase willingness, tending to wait and see on subsequent price trends, with some major factories maintaining restocking of just-needed small volumes. The optimal purchasing timing for trading firms engaging in both spot and futures market had not yet arrived. Overall buying sentiment in the market remained low but improved slightly compared to the previous day. Ultimately, the actual transaction price range in the central China market hovered between parity with the central China price and a discount of 20 yuan to the central China price, with relatively small fluctuations. The central China market shipment sentiment index was 2.82 today, up 0.01 MoM; the purchasing sentiment index was 2.37, up 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas decreased by 2,000 mt MoM today, with destocking mainly driven by Guangdong and Gongyi.