In the early trading session today, SHFE aluminum fluctuated downward. In the East China spot market, holders had limited shipments, market quotations were firm, downstream replenishment was active, overall transactions were good, and spot discounts narrowed. Today, SMM A00 aluminum price was at a discount of 40 yuan/mt against the 2409 contract, up 20 yuan/mt from the previous trading day. The spot price recorded 19,330 yuan/mt, down 160 yuan/mt from the previous trading day. In the second trading session, futures prices slightly rose, market procurement was active, and holders mainly adjusted prices. High-price transactions were limited, and mainstream transactions were concentrated at a premium of 0-50 yuan/mt over SMM A00 aluminum prices.
In the early trading session today, the quotation range in the Central China spot market varied significantly. Later, the market saw more buying and less selling, with transaction discounts continuing to narrow. Low-priced goods were hard to find. Downstream industries such as plates and strips had good operating rates, enterprises were active in replenishing inventories, and market transactions were relatively active. With the continuous narrowing of spot discounts recently, the cancellation of warehouse warrants in Gongyi increased, and the circulation of warehouse warrant goods in the market increased. Today, SMM aluminum price in Central China was at a discount of about 50 yuan/mt against the 2409 contract, up 40 yuan/mt from the previous trading day, and a discount of about 10 yuan/mt against SMM A00. The average spot price in Central China recorded 19,320 yuan/mt, down 140 yuan/mt from the previous trading day. Mainstream transactions were concentrated at a premium of 0-50 yuan/mt over SMM Central China aluminum price.
According to SMM inventory data, domestic aluminum social inventory slightly decreased on Monday this week, with aluminum ingot inventory down 1,000 mt from last Thursday to 810,000 mt. From the outflow data, last week's outflows from warehouses still maintained a WoW decline, but from a regional perspective, weekly outflows increased in Wuxi and Gongyi, leading to a destocking state, while Foshan still showed poor destocking. Entering September, the operating rates of domestic primary processing products such as aluminum billets are expected to rebound, and casting ingot production may show a MoM decrease, which is favorable for the future narrowing of aluminum spot discounts.
