Specifically, trading sentiment was good in eastern China today. The relatively small arrival volume provided strong support for prices. Downstream purchase willingness weakened, but traders had a strong willingness to refuse to budge on prices due to low inventory. Moreover, due to the shortage of goods, suppliers were cautious in selling, and market transactions were mainly priced at SMM+10, with some at +20. Today, SMM A00 aluminium was quoted at RMB 20,360 per tonne, up RMB 50 per tonne from the previous trading day, with a premium of 80 against the 06 contract, up RMB 10 per tonne from the previous trading day.
In the central China market, transactions were mainly concentrated on selling at the average SMM central China price today, with significant fluctuations in morning quotes. SMM central China A00 aluminium was recorded at RMB 20,290 per tonne against the SHFE aluminium 2506 contract, up RMB 50 per tonne from the previous trading day. The price spread between central China and east China was RMB 70 per tonne, unchanged from the previous trading day, with a premium of 10 against the 2506 contract.
On the inventory side, according to SMM's domestic aluminium ingot inventory data, domestic aluminium ingot inventory stood at 557,000 tonnes on May 22, a destocking of 28,000 tonnes from Monday. In the short term, the relatively small arrival volume in eastern China is conducive to the rise of premiums and discounts. Follow-up attention should be paid to changes in demand.
