Industry News

Entering the Chinese New Year holiday, market trading is sluggish

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Update time : 2025-01-24 17:37:12
SHFE aluminium front-month contract fluctuated rangebound in the early trading session today, with prices rising significantly during the second trading session. Suppliers and downstream buyers in east China have entered the Chinese New Year holiday, leading to sluggish market transactions. Today, SMM A00 aluminium ingot prices were at a discount of RMB 20 per tonne against the SHFE 2502 contract, flat compared to the previous trading day. SMM A00 aluminium ingot prices stood at RMB 20,190 per tonne, down RMB 10 per tonne from the previous trading day.

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.

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