Key Moments
- SHFE aluminium 2606 futures traded at a lower level in the morning compared with the same session on the previous trading day.
- Spot premiums in east China held at RMB 10-20 per tonne over the SHFE aluminium July contract, while central China saw discounts of RMB 30-50 per tonne.
- Aluminum ingot inventories in major consuming regions declined by 1,550 tonnes day-on-day, led by drawdowns in Guangdong and Wuxi.
East China: Lower Futures, Cautious Selling, Weak Procurement
During the morning session, the SHFE aluminium 2606 contract traded at an operating center that was below the level recorded in the same period of the previous trading day. The decline in futures prices kept part of the selling side on the sidelines, as some holders of material chose to delay sales in response to the weaker price environment.
Downstream buyers focused primarily on just-in-time purchasing and were influenced by a bearish outlook, which together restrained overall procurement enthusiasm. Spot activity in east China was concentrated at a premium of RMB 10 per tonne to RMB 20 per tonne versus the SHFE aluminium July contract.
The east China market shipment sentiment index stood at 2.83 today, down 0.05 day-on-day (D-o-D), while the procurement sentiment index registered 2.73, a decrease of 0.04 D-o-D, underscoring the subdued tone in both selling and buying interest.
Central China: Persistent Downtrend Weighs on Demand
In central China, the spot trading environment also remained sluggish. The ongoing downward movement in the futures aluminium market reinforced concerns about further price declines among downstream processing enterprises. As a result, many buyers stayed cautious, and only a portion of companies not tied to long-term contracts engaged in just-in-time purchasing.
The sharp decline in aluminium prices curbed suppliers’ willingness to sell, and their ability and readiness to maintain firm offer levels were both limited. Actual spot deals in central China largely took place at a discount of RMB 30-50 per tonne to the SHFE aluminium July contract.
The central China market shipment sentiment index came in at 2.86 today, slipping 0.01 D-o-D, while the procurement sentiment index was 2.10, down 0.02 D-o-D, reflecting continued weakness on both sides of the market.
Market Sentiment and Regional Pricing Snapshot
| Region | Spot Price Relationship vs SHFE July Aluminium | Shipment Sentiment Index | D-o-D Change | Procurement Sentiment Index | D-o-D Change |
|---|---|---|---|---|---|
| East China | Premium of RMB 10-20 per tonne | 2.83 | -0.05 | 2.73 | -0.04 |
| Central China | Discount of RMB 30-50 per tonne | 2.86 | -0.01 | 2.10 | -0.02 |
Inventory Dynamics: Ingot Stocks Edge Lower
On the inventory side, aluminium ingot stocks across major consumption hubs declined by 1,550 tonnes D-o-D today. The drawdown was mainly concentrated in Guangdong and Wuxi, indicating localized destocking despite the generally weak trading atmosphere.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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