Entering the Chinese New Year holiday, market trading is sluggish

In the central China market, the overall market showed weak supply and demand. Suppliers adopted a passive selling approach during the holiday, with actual transactions mainly at a premium of RMB 20-40 per tonne against SMM central China prices. On Friday, the Henan-Shanghai price spread was at a discount of around RMB 90 per tonne. SMM central China A00 aluminium ingot prices were recorded at RMB 20,100 per tonne, up RMB 10 per tonne from the previous trading day.

Regarding inventory, SMM data showed that social inventory of aluminium ingots in three domestic regions increased by 7,100 tonnes to 330,500 tonnes as of January 24. In the short term, earlier in-transit cargoes gradually entered warehouses, coupled with downstream entering the Chinese New Year holiday, leading to a turning point in social inventory. However, continuous destocking in Wuxi supported regional premiums and discounts. Future attention should be paid to arrivals in east China and changes in downstream demand.