[Supply-demand imbalance coupled with cost disturbances led to a decline in ADC12 prices in Q2 [SMM Analysis]]

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 9 May, 2025

[SMM Midday Review of Spot Aluminum: Price Pullback Stimulates Transactions, Central China's Spot Market Shows Strong Performance] On the inventory side, according to SMM's domestic aluminum ingot inventory data, the inventory of aluminum ingots in three domestic locations stood at 487,400 mt on May 9, a destocking of 13,200 mt from the previous day. In the short term, the post-holiday pullback in aluminum prices has stimulated spot transactions, narrowing the spot discounts. However, it is still necessary to monitor the impact of changes in end-use demand due to the shift between peak and off-peak seasons in the downstream sector.

According to SMM statistics, in terms of domestic aluminum billet inventory in two regions, the inventory of aluminum billet in Guangdong was 80,100 mt, and the inventory of aluminum billet in Wuxi was 18,700 mt, totaling 98,800 mt, down 4,200 mt MoM. Today, aluminum prices operated steadily, with processing fees continuing to stand firm on quotes and being released slowly in the morning session. However, as the weekend approached, some suppliers lowered their quotes to realize cash, leading to an increase in the circulation of lower-priced goods. Downstream demand was moderate, and overall transactions were average. Today, the quotes for aluminum billet processing fees in Foshan market were 430/480 yuan/mt, unchanged; the quotes in Wuxi market were 480/560 yuan/mt, up 30 yuan/mt; and the quotes in Nanchang region were 500/550 yuan/mt, unchanged. (Unit: yuan/mt)