Aluminum Futures Continued to Decline, Downstream Buying Sentiment Recovered Slightly [SMM Spot Aluminum Midday Review]

SMM June 10 news:

Market expectations for US interest rate hikes suppressed the upward momentum of SHFE aluminum. In morning trading, the SHFE aluminum 2606 contract fluctuated downward, with the overall price center dropping significantly from the previous trading day. Buying sentiment in east China recovered somewhat today. Mainstream spot transaction prices were at a discount of 60-70 yuan/mt against the SHFE aluminum 06 contract. Today, the shipment sentiment index in east China was 2.86, flat day-on-day, while the purchase sentiment index was 2.90, up 0.1 day-on-day.

SHFE aluminum futures prices continued to decline. Today, buying sentiment among downstream processing enterprises in central China recovered slightly, and their willingness to purchase on dips improved. Moreover, with low absolute prices and a relatively small price spread between central China and east China, trading firms engaging in both spot and futures market tended to sell in large concentrated volumes to profit from earlier price differences. Eventually, the actual transaction price range in the central China market centered around a discount of 60-90 yuan/mt against the SHFE aluminum 06 contract. Today, the shipment sentiment index in central China was 2.89, up 0.01 day-on-day, while the purchase sentiment index was 2.22, flat day-on-day.

On the inventory front, today, aluminum ingot inventory in major consuming regions fell by 17,000 mt WoW, with destocking observed in all three regions.