SHFE aluminum continues to fall, price spread between futures contracts widens, spot premiums fall under pressure [SMM Aluminum Spot Midday Review]

SMM, November 4:

SHFE aluminum futures continued to decline, with the near-month BACK structure widening to a year-to-date high of 350 yuan/mt, further suppressing spot premiums. However, as aluminum prices fell today, consumption improved slightly, and most suppliers showed limited willingness to lower prices further. Under the pressure of the wide price spread between futures contracts, most traders reduced trading volumes. Today, SMM A00 aluminum ingot spot prices against the SHFE aluminum 2611 contract stood at a premium of 10-30 yuan/mt.

In the central China market today, trading sentiment warmed slightly as the price spread between Henan and Shanghai narrowed, but the slight decline in aluminum futures, coupled with the arrival of the off-season and the impending pressure of aluminum ingot inventory buildup, kept purchase willingness among downstream processing enterprises at low levels, making a sharp rebound unlikely in the short term. Ultimately, actual transaction prices in the central China market ranged from a discount of 80-100 yuan/mt against the SHFE aluminum November contract.