SMM, May 22:
In the morning session, the SHFE aluminum 2606 contract fluctuated upward, but the overall price center moved lower compared to the previous trading day. Today, some downstream enterprises stockpiled ahead of the weekend, and overall market buying sentiment improved slightly. Influenced by destocking and bullish sentiment, some sellers showed a prevailing sentiment to hold prices firm. Mainstream spot cargo quotations in the market ranged from SMMA00 -10 yuan/mt to +10 yuan/mt. Today, the east China market shipment sentiment index was 3.06, flat MoM; the procurement sentiment index was 3.1, up 0.04 MoM.
Approaching the weekend, and with futures aluminum prices pulling back, traders in the central China market showed significantly stronger willingness to hold prices firm and sell. However, downstream processing enterprises had high raw material inventory, and coupled with the relatively small price spread between central China and east China, they tended to prioritize consuming internal inventory, with weaker procurement sentiment. Ultimately, the actual transaction price range in the central China market hovered between a premium of 20 yuan and a discount of 10 yuan to the central China price. Today, the central China market shipment sentiment index was 2.84, up 0.01 MoM; the procurement sentiment index was 2.27, flat MoM.
Inventory side, today aluminum ingot inventory in major consumption regions fell 11,500 mt WoW, with all three regions showing a destocking trend.
