Downstream Demand Steadily Recovers, Spot Premiums/Discounts Remain Stable [SMM Spot Aluminum Midday Review]

SMM, February 13

— In the early trading session, the center of SHFE aluminum front-month contract fluctuated, with moderate market transactions. Some traders reported a rebound in downstream purchases after resumption of work. Specifically, trading in east China continued to improve, and spot discounts remained stable. Today, SMM A00 aluminum ingot was at a discount of 30 yuan/mt against the SHFE 2502 contract, unchanged from the previous trading day. SMM A00 aluminum ingot prices stood at 20,510 yuan/mt, down 30 yuan/mt from the previous trading day.

In the central China market, overall market activity was still recovering, with spot discounts narrowing. Actual transactions in the market were mainly on par with SMM central China prices. Today, the Henan-Shanghai price spread was around a discount of 170 yuan/mt. SMM central China A00 aluminum ingot was recorded at 20,370 yuan/mt, down 20 yuan/mt from the previous trading day.

Inventory-wise, according to SMM data on aluminum ingot social inventory in major domestic consumption areas, inventory increased by 34,000 mt to 763,000 mt as of February 13. After the Lantern Festival, downstream sectors largely resumed work and production, driving demand higher. However, aluminum prices remained at a relatively high level, and spot premiums/discounts are expected to remain stable. Moving forward, attention should be paid to the progress of downstream resumption of work and production, as well as disruptions on the aluminum supply side.

Source: SMM

》Subscribe to view historical SMM metal spot prices