SMM April 23 News
SHFE aluminum fluctuated in the morning session today. It surged rapidly in the early stage due to macro sentiment, then fluctuated downward, and closed at 19,885 yuan/mt in the first trading session. In the spot market, shipments in east China and central China remained sluggish, mainly due to ample supply in the spot market, with suppliers selling more goods, and some traders reported that aluminum plants were actively selling. Specifically, spot premiums in east China pulled back again, mainly due to sufficient supply. The market initially traded at a discount of 10 yuan/mt against SMM, then gradually shifted to a discount of 20 yuan/mt, with a few trades at a discount of 30 yuan/mt. SMM A00 aluminum was quoted at 19,910 yuan/mt, up 30 yuan/mt from the previous trading day, with a premium of 20 yuan/mt against the May contract, narrowing by 20 yuan/mt from the previous trading day.
In central China, transactions continued to weaken, with suppliers offloading goods, while downstream purchases were weak. In the morning, trades were mainly at a discount of 10 yuan/mt against SMM central China, with a few at a discount of 20 yuan/mt. SMM central China A00 aluminum was recorded at 19,830 yuan/mt against the SHFE 2505 contract, up 20 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -80 yuan/mt, with actual market transactions at a discount of 10 yuan/mt against SMM central China and a discount of 60 yuan/mt against the 2505 contract.
In terms of inventory, according to SMM's domestic aluminum ingot inventory data from three regions, domestic aluminum ingot inventory in three regions stood at 543,500 mt on April 23, down 9,700 mt from Monday. In the short term, the fundamentals have not seen a large-scale weakening in demand, providing support for domestic aluminum prices. However, macro uncertainties have led to cautious market sentiment, and with the transition between peak and off-peak seasons approaching, coupled with ample market supply, spot aluminum premiums and discounts are expected to pull back slightly in the short term.
Data source: SMM
