SMM December 10 news:
SHFE aluminum December contract fluctuated upward in early trading but pulled back in absolute terms compared to the previous trading day. In east China, market sentiment recovered, downstream maintained just-in-time procurement, but traders actively purchased, spot discounts were significant, holders held prices firm and were reluctant to sell, actual transactions were mainly at parity to a premium of 10 yuan/mt against the SMM average price, and spot discounts showed signs of narrowing. Today's east China market sales sentiment index was 2.71, up 0.09 MoM; purchase sentiment index was 2.63, up 0.03 MoM. SMM A00 aluminum closed at 21,770 yuan/mt, down 110 yuan/mt from the previous trading day, at a discount of 90 yuan/mt against the December contract, flat from the previous trading day.
In central China, transactions remained steady today, futures absolute prices pulled back, downstream purchase willingness recovered, but the premium/discount and price spread between futures contracts were too wide, most holders adopted a wait-and-see approach, market shortage sentiment was strong, buyers successively raised prices, and market offers continued to rise. Final actual transaction prices ranged from a premium of 10 yuan/mt to a premium of 50 yuan/mt against the central China price. Today's central China market sales sentiment index was 2.78, down 0.08 MoM; purchase sentiment index was 2.79, up 0.01 MoM. SMM central China price closed at 21,660 yuan/mt, down 80 yuan/mt from the previous trading day, at a discount of 200 yuan/mt against the December contract, up 30 yuan/mt from the previous trading day, with the central China-east China price spread at -110 yuan/mt, up 30 yuan/mt from the previous trading day.
Inventory side, Wednesday's total aluminum ingot inventory in major consumption areas was 434,000 mt, destocking 5,500 mt MoM. Aluminum ingot inventory continued to show destocking, seasonal factors affected Xinjiang aluminum ingot transportation, some backlog formed in Xinjiang, and aluminum ingot inventory is expected to show a slow destocking trend in the short term. Short-term, absolute prices pulled back, traders are expected to hold prices firm to repair spot discounts, and spot discounts are expected to narrow.
