Aluminum ingots continued to grow, and discounts slightly expanded amid sufficient spot supply [SMM spot aluminum review]

In early trading today, the most-traded SHFE aluminum went up. Today, trading in east China was active. The purchasers mainly bought goods only as needed. The transactions were moderate. According to SMM statistics, today's aluminum ingot inventory in Wuxi (excluding Hangzhou, Changzhou and Haian) was 258,100 tons, a decrease of 2,200 tons from the previous trading day. Today’s SMM A00 aluminum price has a discount of 60 yuan/ton against the 2404 contract, which is 10 yuan/ton lower than the previous trading day. The spot price is recorded at 19,340 yuan/ton. During the second trading session, prices moved rangbound, and holders mainly adjusted prices to follow the market and shipped goods. Today, the mainstream transaction price of SMMA00 aluminum in east China ranged from a discount of 10 yuan/ton to a premium of about 10 yuan/ton.

Today's spot transactions in the central China were average, with downstream buyers purchased only as needed. According to SMM statistics, today's aluminum ingot inventory in Gongyi is about 161,900 tons, an increase of 400 tons from the previous trading day. Today's SMM central China price has a discount of 180 yuan/ton against the 2403 contract, around 20 yuan/ton lower than the previous trading day, the average spot price recorded 19,220 yuan/ton. The mainstream spot transaction in early trading had a discount of 10 yuan/ton against the original price of SMM to a premium of about 10 yuan/ton.

Overall, according to SMM data, aluminum inventory on Thursday was 851,000 tons, up 8,000 tons compared with last Thursday and 4,000 tons compared with Monday. The level of inventory remained at the lowest level in the same period in nearly seven years, and the accumulation rate slowed down. The import window has been closed in stages, and inventories are expected to peak, which may provide some support for aluminum prices in the short term. The current inventory is still in the accumulation cycle amid sufficient spot supply, which puts a certain pressure on the spot premium and discount. The spot price may maintain a discount in the short term. According to SMM research, Yunnan Province will release 800,000 kilowatts of load power in the near future for the resumption of production in the province. Aluminum smelters may restart in the near future. The drought in Yunnan will not disturb the short-term resumption of aluminum production, and supply may increase. We need to continue to pay attention to the progress of production resumption and the recovery of demand in the traditional peak seasons.