Trading Brisk in Spot Market as SHFE Aluminum Rally Fuels Bullishness, SMM Reports

[SMM Aluminum Alloy Flash] SMM data showed that China's social inventory of cast aluminum alloy ingots stood at 25,200 mt this week, down 5,800 mt WoW, extending the destocking trend with a widening decline. After the National Day holiday, cast aluminum alloy futures accelerated their downward move, but aluminum scrap prices pulled back only modestly and cost support remained strong. Spot prices fell significantly less than futures, and the spot-futures basis widened rapidly, boosting willingness to sell in the market and accelerating the pace of warehouse withdrawals from social inventory. In the short term, inventory is expected to continue destocking, with the extent of the decline hinging on the basis trend and market procurement pace.

[ADC12 Price Daily Commentary: Cast Aluminum Most-Traded Contract Closes Down 1.78% at Midday, Hits New Stage Low Intraday] Today, the most-traded cast aluminum AD2612 contract opened at 22,705 yuan/mt. After briefly touching 22,730 yuan/mt in early trading, it pulled back on resistance and stepped down to the 22,600 yuan/mt level. Intraday, it dipped to 22,520 yuan/mt on heavy volume, hitting a new stage low before stabilizing and rebounding. At midday, it closed at 22,640 yuan/mt, down 410 yuan/mt, or 1.78%, from yesterday's settlement price of 23,050 yuan/mt.

On October 15, Nanchang aluminum billet Φ90 was quoted at RMB 23,860/t, with processing fee at RMB 600/t (up RMB 150 from the previous trading day); Φ120 at RMB 23,810/t, with processing fee at RMB 550/t (up RMB 150); Φ178 at RMB 23,810/t, with processing fee at RMB 550/t (up RMB 150). SMM A00 aluminum spot stood at RMB 23,260/t.