The most-traded SHFE aluminum contract went down, and spot aluminum discounts may persist [SMM Spot Aluminum Midday Review]

In today's early trading, the most-traded SHFE aluminum contract fluctuated downward. Today, the holders in east China mainly shipped goods and the transaction was average. According to SMM statistics, the inventory of aluminum ingots in Wuxi (excluding Hangzhou, Changzhou, Hai'an, etc.) was 287,100 tons on Apr 24, a decrease of 2,500 tons from the previous trading day. On Apr 24, the SMM A00 aluminum price is at a discount of about 50 yuan/ton to the 2405 contract, which is the same as the previous trading day. The spot price is 20,270 yuan/ton. In the second trading period, the prices shifted downward, and the holders mainly followed the market to adjust the price and ship goods. The mainstream transaction in east China was at a discount of about 10 yuan/ton to a premium of about 10 yuan/ton to the SMMA00 aluminum price.
Spot transactions in central China were moderate, and downstream purchases were mainly based on rigid demand. According to SMM statistics, the inventory of aluminum ingots in Gongyi area is about 118,900 tons today, a decrease of 500 tons from the previous trading day. SMM Central China price is about 110 yuan/ton lower than the 2405 contract, which is the same as the previous trading day. The average spot price is 20,210 yuan/ton. The mainstream spot transactions in the early trading are at a discount of about 10 yuan/ton to a premium of about 10 yuan/ton to SMM central China price.
Overall, according to SMM data, the aluminum inventory was 831,000 tons on Monday, a decrease of 13,000 tons from last Thursday. The high aluminum price has suppressed the destocking of aluminum ingots to a certain extent. On the supply side, imports have shown substantial losses, the import window has been closed, and the impact of imported supplies has weakened; on the demand side, we are currently in the traditional peak season. As high aluminum prices suppressed the enthusiasm of downstream purchases and stocking in the short term, spot aluminum prices may still maintain a discount in the short term, but driven by the destocking expectation of aluminum ingots, the discount may narrow.