SHFE Aluminum Fluctuated Downward, Trading Sentiment Diverged in East and Central China [SMM Spot Aluminum Midday Review]

Published: Feb 5, 2026 15:05

Save

SMM February 5:

SHFE aluminum 2602 fluctuated downward in the morning session, with the price center lower than the previous trading day. Affected by the decline in aluminum prices, overall market procurement sentiment rose, narrowing the overall market spot premiums/discounts. Mainstream transaction prices were concentrated at a premium of 20 yuan/mt to 30 yuan/mt. Today, the east China market selling sentiment index was 2.84, down 0.02 MoM; the purchasing sentiment index was 2.69, up 0.15 MoM. SMM A00 aluminum closed at 23,340 yuan/mt, down 420 yuan/mt from the previous trading day, at a discount of 180 yuan/mt against the 2602 contract, up 30 yuan/mt from the previous trading day.

Trading sentiment in the central China market weakened today. End-use consumption softened and the Chinese New Year break is expected to start, leading to a decrease in raw material stockpiling demand from downstream processing enterprises. On the selling side, suppliers showed a strong willingness to hold prices firm and were reluctant to sell. Although the market dipped slightly, premium/discount prices remained high. Ultimately, actual transaction prices in the central China market hovered between a premium of 10 yuan/mt to 40 yuan/mt against the central China price. Today, the central China market selling sentiment index was 2.74, down 0.04 MoM; the purchasing sentiment index was 2.24, down 0.06 MoM. SMM central China price closed at 23,240 yuan/mt, down 400 yuan/mt from the previous trading day, at a discount of 280 yuan/mt against the 2602 contract, up 50 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -100 yuan/mt, narrowing by 20 yuan/mt from the previous trading day.

Inventory side, aluminum ingot inventory in major consumption areas increased by 1,500 mt MoM today, with the main sources of inventory buildup being Guangdong and Gongyi. In the short term, high aluminum prices may continue to suppress end-use demand, coupled with the impact of the downstream Chinese New Year break. Aluminum ingots still face inventory buildup risks, and spot premiums/discounts are expected to remain under pressure.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 7, 2026 17:24

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

Feb 7, 2026 17:24

Feb 7, 2026 17:23

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

Feb 7, 2026 17:23

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

Feb 7, 2026 17:23