SHFE aluminium fluctuated in the morning session, trading above RMB 20,000 per tonne during the first trading period. In the spot market, trading in eastern China and central China was moderate, mainly due to increased spot market supply and aluminium prices returning to RMB 20,000 per tonne, which dampened downstream purchasing enthusiasm.
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The market mostly traded at discounts to SMM. Specifically, spot premiums in eastern China pulled back again, with early market transactions at -10 against SMM. SMM A00 aluminium was quoted at RMB 20,070 per tonne, up RMB 90 per tonne from the previous trading day, at parity with the May contract, narrowing by RMB 10 per tonne from the previous trading day.
Trading in central China was sluggish, with weak downstream purchasing. Early transactions were mainly at -10 to parity against SMM in central China. SMM central China A00 was recorded at RMB 19,890 per tonne against the SHFE aluminium 2505 contract, up RMB 90 per tonne from the previous trading day. The price spread between Henan and Shanghai was RMB 90 per tonne, at a discount of RMB 90 per tonne to the 2505 contract.
On the inventory side, according to SMM's domestic aluminium ingot inventory data for three regions, domestic aluminium ingot inventory in three regions stood at 531,100 tonnes on April 25, down 6,400 tonnes from the previous day. In the short term, the fundamentals show no significant weakening in demand, providing support for domestic aluminium prices. However, a slight easing in macro conditions has driven futures market gains. With the domestic market approaching the transition between peak and off-peak seasons and ample market supply, spot aluminium premiums and discounts are expected to drop back slightly in the short term.
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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