Downstream Purchases Slow, Overall Transactions Limited [SMM South China Spot Aluminum Daily Review]

Published: Jun 15, 2026 17:16

Save

SMM, June 15 –

[SMM] On June 15, SMM A00 aluminum (Foshan) was reported at 24,140, unchanged, with a discount of 20 for the current month and a discount of 90 for the next month (unit: yuan/mt)

Today, the futures market stabilized and edged lower, with spot aluminum in South China in the doldrums. Tight weekend arrivals and a sharp inventory drawdown provided confidence support for holders, who held prices firm for shipments in the early session; however, with absolute prices and spot-futures price spreads at relatively high levels, monetization needs gradually took over, accelerating the shipment pace. Quotations were slightly lowered to a discount of -10 to 0 yuan/mt, with actual circulation being ample and even cheaper sources available. Demand side, after concentrated restocking last week, downstream users returned to a just-in-time purchasing pace today, showing no urgency in buying; traders pushed for lower prices, shifting to discount procurement, with marginal improvement in enthusiasm, but overall absorption capacity remained limited. Momentum on both ends was weak, and transactions were hardly ideal. Spot transaction prices were concentrated at a premium of -40 to 0 yuan/mt over the SHFE aluminum 2606 contract.

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 for 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

1 hour ago

Geopolitical Risk Premium Exits Market, Aluminum Price under Short-Term Pressure and Fluctuating [SMM Aluminum Morning Brief]

[Geopolitical Risk Premium Exits Market, Aluminum Prices Under Short-Term Pressure and Volatility] On the macro front, the US and Iran have completed signing an electronic MOU. Expectations of geopolitical easing continue to materialize, market panic over the Middle East conflict continues to fade, and the geopolitical risk premium for commodities has weakened significantly. US May CPI rose 4.2% YoY, hitting a three-year high, while core CPI also strengthened. The market continues to bet on the Fed restarting rate hikes within the year, and expectations of tightening liquidity continue to suppress metal valuations. On the fundamentals side, the Middle East conflict caused involuntary production cuts in overseas aluminum capacity. Expectations of a global supply deficit continue to widen, and coupled with expectations of rising energy costs, this provides strong bottom support for LME aluminum. China’s inventory destocking trend has been established, and the destocking logic continues to be realized. The rebound in the proportion of liquid aluminum, support from export demand, and supply normalization compressing aluminum ingot formation—these three fundamental factors jointly drive the continuation of destocking. SMM maintains its forecast that inventory will fall to around 1.28 million mt by late June, and may further approach 1.2 million mt by end-June/early July, bringing some support to aluminum prices. However, the pressure from high domestic inventory remains relatively pronounced. Coupled with the currently bearish macro sentiment dominating the market, short-term domestic aluminum prices are mainly in the doldrums, with volatile adjustments.

1 hour ago

India Extends Anti-Dumping Duties on Aluminum Foil from China, Malaysia, Thailand, and Indonesia Until 2026

According to foreign media reports, based on applications from multiple enterprises including Hindalco Industries and SRF Altech, India has decided to extend the anti-dumping duties on aluminum foil with a thickness of up to 80 microns imported from China, Malaysia, Thailand, and Indonesia until December 15, 2026. Previously, on September 29, 2025, the Directorate General of Trade Remedies (DGTR) of India's Ministry of Commerce and Industry had initiated a sunset review of aluminum foil imports from these four countries.

1 hour ago

China's Secondary Aluminum Ingot Inventory Drops, Destocking Accelerates

[SMM Aluminum Flash] The inventory of secondary aluminum ingot in major consumption areas in China stood at 24,600 mt, down 570 mt from the previous day, with the destocking pace picking up.

1 hour ago