The Central China market slightly increased compared to the previous day. Although downstream processing enterprises cut production by about 20% due to environmental protection-related controls, road transport gradually resumed after the heavy snow ended in Henan, leading to a slight overall improvement in buying sentiment. As aluminium plant shipments had not fully recovered, suppliers raised prices for shipments.
Actual transaction prices in the central China market today ranged from a premium of RMB 10 per tonne to a premium of RMB 40 per tonne against the central China price. The central China market selling sentiment index was 2.68, flat m-o-m; the buying sentiment index was 2.21, up 0.02 m-o-m. SMM central China aluminium closed at RMB 23,610 per tonne, up RMB 50 per tonne from the previous trading day, at a discount of RMB 250 per tonne against the 2602 contract, up RMB 30 per tonne from the previous trading day. The Henan-Shanghai price spread was -100 per tonne, narrowing by RMB 20 per tonne from the previous trading day.
On the inventory side, aluminium ingot inventory in major consumption areas decreased by 6,000 tonnes w-o-w on Wednesday, with destocking observed in all three regions. In the short term, high aluminium prices may continue to suppress end-use demand, aluminium ingots still face inventory buildup risks, and spot premiums per discounts are expected to remain under pressure.
