Prices fluctuated in the morning session, with reduced spot aluminium arrivals stimulating a narrowing of the discount

SHFE aluminium opened higher this morning but then fluctuated and dropped back slightly. The spot market was stimulated by continued destocking, coupled with insufficient arrivals, leading suppliers to stand firm on quotes and narrowing spot discounts. Downstream purchasing was generally as needed, with some manufacturers in east China stockpiling more.

Specifically, traders in east China stood firm on quotes, with the market offering SMM A00 at RMB +10 per tonne, and some at RMB +20 per tonne. Today, SMM A00 was at a discount of RMB 10 per tonne against the SHFE aluminium 2504 contract, with SMM A00 aluminium ingot prices recorded at RMB 20,670 per tonne, up RMB 10 per tonne from the previous trading day. In central China, the market turned quiet due to a rebound in futures, with transactions near parity. SMM central China A00 was recorded at RMB 20,570 per tonne against the SHFE aluminium 2504 contract, flat from the previous trading day, with the Henan-Shanghai price spread at RMB -100 per tonne.

Inventory-wise, according to SMM's domestic aluminium ingot social inventory in three regions, mainstream consumption areas recorded 682,500 tonnes of aluminium ingot inventory on March 26, destocking 8,200 tonnes W-o-W. In the short term, against the backdrop of the peak season and the growing trend of aluminium use in new energy, social inventory is expected to continue destocking, with fewer arrivals in mainstream consumption areas such as Wuxi, likely narrowing premiums and discounts in the spot market.

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.