Spot aluminium premiums continued to expand amid brisk trades

Published: Apr 22, 2020 15:00

Save

Premiums for spot aluminium prices in China over futures continued to expand on Wednesday morning as demand remained strong.

SHANGHAI, Apr 22 (SMM) – Premiums for spot aluminium prices in China over futures continued to expand on Wednesday morning as demand remained strong.

Spot aluminium were quoted at 12,250-12,270 yuan/mt in east China’s Shanghai and Wuxi in morning trade, with premiums of 30-50 yuan/mt over the May contract on the Shanghai Futures Exchange. That was slightly up from 20-40 yuan/mt on Tuesday morning.

Chart 1: A00 aluminium prices and premiums over the SHFE May contract

Source: SMM

With the historic plunge in oil prices roiling global markets, SHFE aluminium slipped along with the nonferrous complex in early morning trade. It, however, clawed back those losses and returned the green, supported by positive fundamentals.

SMM data showed that social inventories of primary aluminium ingots in China dropped more than 100,000 mt last week and are on track for another massive decline.

Meanwhile, south China’s spot aluminium market continued to outperform the eastern one, as premiums of Guangdong spot aluminium prices over Shanghai expanded to 50-60 yuan/mt in morning trade, compared to 40 yuan/mt in the previous day.

Chart 2: Guangdong spot aluminium prices and premiums over Shanghai

Source: SMM

Aside from sharp declines in inventories, firm backwardation on SHFE aluminium also proved that near-term demand for aluminium is robust in China. Price spreads between the SHFE May and June contracts have expanded to 90-100 yuan/mt.

Inventory data Aluminium

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 28, 2026 22:00

US-Iran Joint Military Escalation May Pose Multiple Shocks to Global Primary Aluminum Supply Chain [SMM Analysis]

The Middle East turmoil triggered by the US-Iran conflict has become the major geopolitical black swan for the global primary aluminum market, potentially causing millions of tonnes of supply disruptions and raising smelting costs. Coupled with risk aversion, aluminum price volatility may intensify.

Feb 28, 2026 22:00

Feb 28, 2026 21:33

US-Iran Joint Military Escalation May Pose Multiple Shocks to Global Primary Aluminum Supply Chain [SMM Analysis]

The Middle East turmoil triggered by the US-Iran conflict became the largest geopolitical black swan for the global primary aluminum market, potentially causing supply disruptions at a scale of millions of mt, while also pushing up smelting costs. Coupled with market risk-averse sentiment, the volatility of aluminum prices may be amplified. Going forward, it is necessary to remain vigilant against risks such as escalation of conflicts, strait blockades, and raw material supply interruptions, as well as further impacts on aluminum prices from macroeconomic disturbances, and to prudently address the operational and investment risks brought about by fluctuations in the supply chain.

Feb 28, 2026 21:33

Feb 28, 2026 20:43

2026 Overview of Aluminum Plate/Sheet, Strip and Foil Enterprises Resuming Work After Chinese New Year [SMM Analysis]

[SMM Analysis: An Overview of the Resumption of Work for Aluminum Plate/Sheet, Strip and Foil Enterprises After the 2026 Chinese New Year] Looking ahead, as the industry moves past the holiday impact following the Lantern Festival, coupled with the approaching peak season of "Golden March and Silver April" and the "rush to export" window brought about by adjustments in battery export tax rebate policies, the operating rate of the industry is expected to steadily rebound in late March.

Feb 28, 2026 20:43