SMM February 24: SHFE aluminum 2602 fluctuated upward in the morning session, with the price center rising from the previous trading day. Influenced by the higher SHFE aluminum prices, overall purchase sentiment still lagged behind shipment sentiment, but due to the end of the Chinese New Year break, transaction sentiment rose compared to the pre-holiday trading day. Mainstream quotations concentrated at a discount of 20 yuan/mt to the average price. Today, the shipment sentiment index in the east China market was 2.34, up 0.34 WoW; the purchase sentiment index was 2.31, up 0.25 WoW. SMM A00 aluminum closed at 23,390 yuan/mt, up 230 yuan/mt from the previous trading day, at a discount of 160 yuan/mt against the 2602 contract, down 40 yuan/mt from the previous trading day; at a discount of 210 yuan/mt against the 2603 contract. After the Chinese New Year break, traders and downstream enterprises in central China gradually resumed work. Aluminum ingot inventory saw a significant buildup, and post-holiday recovery boosted shipment and purchase willingness among traders and processing enterprises. However, as the holiday was not completely over, some traders adopted a wait-and-see approach, and market transactions remained sluggish. Actual transaction prices in the central China market finally ranged from a discount of 20 yuan to a premium of 20 yuan against the central China price, with premiums and discounts narrowing as aluminum prices rose. Today, the shipment sentiment index in the central China market was 2.52, up 0.27 WoW; the purchase sentiment index was 2.14, up 0.24 WoW. SMM central China closed at 23,310 yuan/mt, up 230 yuan/mt from the previous trading day, at a discount of 240 yuan/mt against the 2602 contract, down 40 yuan/mt from the previous trading day; at a discount of 290 yuan/mt against the 2603 contract. The price spread between Henan and Shanghai was -80 yuan/mt, flat from the previous trading day. Inventory side, aluminum ingot inventory in major consumption areas increased by 196,000 mt WoW, with all three regions showing inventory buildup due to downstream Chinese New Year breaks. In the short term, high aluminum prices may continue to suppress end-use demand, and combined with the impact of downstream holiday breaks, aluminum ingots still face inventory buildup risks, and spot premiums/discounts are expected to remain under pressure.

[SMM Aluminum Morning Meeting Minutes: Aluminum Prices Edged Up Overnight as US-Iran Tensions Briefly Escalated] Overall, the short-term volatility risks in SHFE aluminum and nonferrous metals markets have increased significantly. Prices may continue to be affected by factors such as the US Fed's policy shift, and further amplification of fluctuations cannot be ruled out. It is essential to closely monitor market dynamics and regulatory policy changes, conduct trading rationally and in compliance, and prudently manage positions and risks.

SMM February 3 news: Aluminum ingot: On February 3, SMM A00 aluminum (Foshan) was quoted at 23,310 yuan/mt, down 400 yuan/mt, at a discount of 200 yuan/mt against the front-month contract. During the day, aluminum prices fell sharply. Suppliers generally held prices firm amid limited inventory pressure, but some chose to offer discounts to recoup funds. Downstream end-users restocked based on rigid demand at low prices, and trading was moderate in the morning session. However, in the afternoon, futures continued to decline, and buyers turned cautious, resulting in overall trading that was stronger earlier and weaker later. Aluminum billet: On February 3, the average processing fee for SMM 6063 aluminum billet (Guangdong) specifications Φ90/100 was 50 yuan/mt, while for specifications Φ120 and above, the average processing fee was 0 yuan/mt, down about 20 yuan/mt from the previous day. Dragged down by the sharp decline in aluminum futures, processing fees struggled to rise, and market offers quickly moved lower to hit bottom. Although some producers tentatively raised processing fees, demand significantly shrank as end-users gradually entered holidays, with only a few plants making small restocks. Overall, volume discounts were offered, and trading was sluggish.

According to SMM, wire and cable enterprises in Hebei reported being in a semi-shutdown state, with the industry's operating rate showing weakness and market consumption momentum being insufficient. This weak performance is mainly attributed to two factors: Firstly, the State Grid has just undergone a round of centralized delivery cycles. Although enterprises have sufficient orders on hand, new orders have not yet been matched in a timely manner. Secondly, the current spot aluminum prices are at a high level, while the bid prices offered by enterprises in the early stage are significantly lower than the current prices, resulting in a significant inversion. This has severely compressed profit margins, leading to low purchase willingness for raw materials and insufficient motivation for enterprises to operate and build up finished product inventories.

According to SMM statistics, regarding the inventory of aluminum billets in two domestic locations, the inventory of aluminum billet in Guangdong was 56,800 mt, while the inventory in Wuxi was 19,800 mt, totaling 76,600 mt, a decrease of 1,400 mt MoM. SHFE aluminum prices surged consecutively, with A00 spot aluminum prices in east China gradually approaching the 21,000 yuan/mt threshold. In recent times, the aluminum billet market has seen sluggish transaction performance due to the suppression of high aluminum prices, and the de-stocking of aluminum billets has also shown a significant slowdown. Downstream sentiment is strongly influenced by fear of high prices, and market quotations are severely polarized. The overall center of processing fees for aluminum billets in three domestic locations has shifted significantly downward, with double-digit processing fee quotations appearing in Wuxi and Foshan, and even zero or negative processing fees in Nanchang, resulting in dismal transaction performance. As of June 18, 2025, the aluminum billet market in Foshan reported 50/100, down 100; the processing fees for aluminum billets in Wuxi were reported at 50/130, down 110; and the processing fees in Nanchang were reported at -50/0, down 80. (Unit: yuan/mt)

According to SMM statistics, regarding the inventory of aluminum billets in two domestic locations, the inventory of aluminum billet in Guangdong was 56,800 mt, while the inventory in Wuxi was 19,800 mt, totaling 76,600 mt, a decrease of 1,400 mt MoM. SHFE aluminum prices surged consecutively, with A00 spot aluminum prices in east China gradually approaching the 21,000 yuan/mt threshold. In recent times, the aluminum billet market has seen sluggish transaction performance due to the suppression of high aluminum prices, and the de-stocking of aluminum billets has also shown a significant slowdown. Downstream sentiment is strongly influenced by fear of high prices, and market quotations are severely polarized. The overall center of processing fees for aluminum billets in three domestic locations has shifted significantly downward, with double-digit processing fee quotations appearing in Wuxi and Foshan, and even zero or negative processing fees in Nanchang, resulting in dismal transaction performance. As of June 18, 2025, the aluminum billet market in Foshan reported 50/100, down 100; the processing fees for aluminum billets in Wuxi were reported at 50/130, down 110; and the processing fees in Nanchang were reported at -50/0, down 80. (Unit: yuan/mt)

[SMM Spot Aluminum Midday Review: East China Spot Aluminum Prices Refuse to Budge, Transactions Concentrated Among Traders] Inventory side, according to SMM's domestic aluminum ingot inventory data, the three-location inventory of domestic aluminum ingots stood at 424,000 mt on May 23, a destocking of 8,000 mt from the previous day. In the short term, the relatively low arrival of aluminum ingots in east China is conducive to the rise in premiums and discounts. Attention should be paid to the changes in demand in the following days.

SMM, May 8: Today, spot aluminum prices rose by 10 yuan/mt compared to the previous trading day. SMM A00 aluminum ingot prices closed at 19,620 yuan/mt. The overall aluminum scrap market prices remained unchanged. After the Labour Day holiday, the operating rate of the secondary aluminum industry declined overall. Downstream processing enterprises experienced weak order releases, with procurement mainly driven by immediate needs. Today, the quoted prices for baled UBC aluminum scrap were concentrated in the range of 14,800-15,400 yuan/mt (tax not included), while the quoted prices for shredded aluminum tense scrap were concentrated in the range of 15,650-17,150 yuan/mt (tax not included). Regionally, quoted prices in Hunan, Jiangxi, Foshan, Hubei, and other places remained unchanged. Prices in other regions, such as Shanghai, Jiangsu, Henan, etc., followed A00 aluminum prices and made slight adjustments, with price adjustments ranging from 10-30 yuan/mt. By product, the quoted prices for aluminum tense scrap products, such as shredded aluminum tense scrap, wheel hub removed from vehicle, bare bright aluminum wire, and shredded wrought aluminum alloy scrap, remained unchanged from yesterday. In the short term, the aluminum scrap market is likely to maintain a pattern of fluctuating at highs. However, if primary aluminum experiences strong fluctuations due to macro factors (such as US Fed policies, geopolitical conflicts), or if domestic secondary aluminum enterprises collectively cut production, aluminum scrap prices may face periodic pressure. 》Subscribe to view historical SMM metal spot prices

Despite the projections based on in-transit data and feedback from multiple sources before the Labour Day holiday that domestic aluminum product arrivals during this year's Labour Day holiday would likely exceed those of the same period last year, attention should be paid to the risk of periodic inventory buildup caused by concentrated arrivals during the holiday. Looking back at the pre-holiday expectations, the Gongyi and Foshan regions were expected to face relatively severe pressure from concentrated arrivals after the holiday, while the Wuxi region would experience relatively milder pressure. So, what was the actual situation of domestic aluminum ingot arrivals during the Labour Day holiday? According to the latest statistics from SMM, the actual arrivals in the three regions during the Labour Day holiday amounted to approximately...

Driven mainly by restocking demand ahead of the holiday, along with a slower pace of arrivals since the second half of April and a temporary end to disruptions from imported supplies, the destocking of domestic aluminum ingot inventory accelerated again by month-end April, approaching the 600,000 mt mark, providing a certain degree of upward support for aluminum prices ahead of the holiday. According to SMM statistics, as of April 30, the inventory of aluminum ingots in major domestic consumption areas stood at 614,000 mt, down 29,000 mt from Monday this week, with destocking of 44,000 mt WoW from Thursday last week, and a decrease of 177,000 mt YoY, remaining at a low level compared to the same period in the past three years. In terms of outflows from warehouses...