The Decline of Aluminium Ingot Inventory Drives Bulls to Enter the Market and SHFE Aluminium Rebounded by 1%

Published: May 19, 2022 13:24

Source: SMM

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In the spot market of east China, the SHFE aluminium prices rose while the spot prices remained flat for the month. As a result,the overall market shipments were relatively stable, and downstream purchased as needed without sufficient willingness to chase up. The spot discount in the Zhongyuan (Gongyi) market narrowed sharply. On the one hand, the local aluminium ingot inventory decreased from last Thursday by 20,000 mt to 85,000, hence the holders were more willing to hold the prices firm. On the other hand, under the relatively low inventory of downstream raw materials, the demand for accepting goods still exists. The discount of the Zhongyaun has narrowed around 60 yuan/mt.

SHANGHAI, May (SMM) - The SHFE aluminium rose slightly, and the aluminium price rose to over 20,600 yuan/mt. The spot market inventories in east China declined slightly by 38,000 mt to 965,000mt from last Thursday. The aluminium billet inventories declined by 2,300 mt to 136,400 mt from last Thurday. And driven by the destocking, the long position exceeded 4800 lots.

In the spot market of east China, the SHFE aluminium prices rose while the spot prices remained flat for the month. As a result,the overall market shipments were relatively stable, and downstream purchased as needed without sufficient willingness to chase up.
The spot discount in the Zhongyuan (Gongyi) market narrowed sharply. On the one hand, the local aluminium ingot inventory decreased from last Thursday by 20,000 mt to 85,000, hence the holders were more willing to hold the prices firm. On the other hand, under the relatively low inventory of downstream raw materials, the demand for accepting goods still exists. The discount of the Zhongyaun has narrowed around 60 yuan/mt.

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