Aluminum Futures Market Shows a Rebound Uptrend; Downstream Purchase Sentiment Is Somewhat Restrained [SMM Spot Aluminum Midday Review]

SMM June 12:

In early trading, the SHFE aluminum 2606 contract fluctuated upward, with its overall price center higher than the previous trading day. Selling sentiment in the market increased today, but buying interest among downstream users was suppressed by the higher aluminum prices. However, destocking accelerated, and premium expectations narrowed, supporting firm quotes and transaction prices. Mainstream spot transaction prices were at a discount of 90–100 yuan/mt against the SHFE aluminum 07 contract. The selling sentiment index in east China was 2.96, up 0.07 from the previous day, and the buying sentiment index was 2.83, down 0.04.

SHFE aluminum futures showed a rebound uptrend today. Despite the weekend stockpiling cycle, downstream processing enterprises in central China had ample earlier stockpiles, leading to low buying interest. Suppliers tended to sell heavily while the discount had not yet widened, causing a price collapse and decline. Overall market trading sentiment turned weaker compared with the previous two days. The actual transaction price range in central China was around a discount of 130–160 yuan/mt against the SHFE aluminum 07 contract. The selling sentiment index in central China was 2.91, up 0.01 from the previous day, while the buying sentiment index was 2.21, down 0.01.

On the inventory front, aluminum ingot inventories in major consumption areas fell by 1.4 from the previous day, with all three regions showing destocking.