Aluminum Price Center Shifted Upward, Overall Market Procurement Sentiment Declined [SMM Spot Aluminum Midday Review]

SMM April 14 update:

During the morning session, SHFE aluminum 2604 fluctuated downward, with the price center rising significantly from the previous day. Influenced by higher aluminum prices, overall willingness to sell in the market was high, while buying sentiment was suppressed by elevated prices. Circulating supply in the market was relatively sufficient. Market transactions declined after the opening, with mainstream transactions concentrated around SMM A00 aluminum at -20 yuan/mt to -10 yuan/mt. East China market shipment sentiment index was 3.58 today, up 0.17 MoM; the procurement sentiment index was 2.94, down 0.07 MoM.

Affected by the ongoing escalation of the US-Iran conflict, aluminum futures prices surged sharply from last night's session through today, and overall buying sentiment in the central China market was low. With aluminum prices at elevated levels, downstream processing enterprises mostly adopted a wait-and-see approach, with small factories suspending purchases and only a few large factories maintaining normal procurement, while suppliers showed a strong willingness to sell at high prices. Ultimately, actual transactions in the central China market were poor today, with prices mainly ranging from parity to a discount of 50 yuan against the central China price. The central China market shipment sentiment index was 2.81 today, up 0.04 MoM; the buying sentiment index was 2.36, down 0.04 MoM.

Inventory side, aluminum ingot inventory in major consumption regions increased by 500 mt MoM today, with the inventory buildup mainly driven by Guangdong and Wuxi.