In the early trading session, SHFE aluminium front-month contract fluctuated. As it was the weekend, downstream restocking combined with active trading by traders improved the activity in the spot market today. Specifically, in East China, trading was active, and spot discounts remained unchanged from the previous trading day. Today, SMM A00 aluminium ingot recorded a discount of 30 yuan/mt against the SHFE 2503 contract, with SMM A00 aluminium ingot prices at RMB 20,600 per tonne, up RMB 50 per tonne from the previous trading day.
In the central China market, being the weekend, trading activity continued to improve during the day. Coupled with some inventory being hedged, the circulation rate was relatively low, and traders took the opportunity to stand firm on quotes. Today, the Henan-Shanghai price spread recorded a discount of around RMB 100 per tonne, with SMM central China A00 aluminium ingot prices at RMB 20,500 per tonne, up RMB 60 per tonne from the previous trading day.
Regarding inventory, according to SMM data on aluminium ingot social inventory in three regions, as of February 28, it remained stable at 731,200 tonnes. Inventory saw a slight rebound, and spot premiums and discounts lacked upward momentum. It is expected to fluctuate relatively stable with a weak trend next week.
Source: SMM
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