Futures Market Declines as Downstream Stockpiling Slightly Increases Before the Holiday [SMM Spot Aluminum Midday Review]

Published: Jan 6, 2025 13:00

Save

[SMM Spot Aluminum Midday Review: Futures Market Declines, Downstream Stockpiling Slightly Increases Before the Holiday]

This morning, the most-traded SHFE aluminum contract fluctuated downward to below the daily moving average, around 19,580 yuan/mt. In the spot market, east China saw downstream restocking at lower prices due to the decline in absolute prices. However, under the influence of the off-season, transactions only slightly improved compared to last Friday, in line with expectations. SMM A00 aluminum ingot prices were on par with the SHFE aluminum 2501 contract, unchanged from the previous trading day. SMM A00 aluminum ingot prices recorded 19,630 yuan/mt, down 220 yuan/mt from the previous trading day.

In the central China market, most traders faced a significant drop in absolute prices and showed a strong sentiment to stand firm on quotes, while downstream buyers restocked at lower prices, mainly for rigid demand. The price spread between Henan and Shanghai narrowed to a discount of around 80 yuan/mt. SMM Central China A00 aluminum ingot prices recorded 19,550 yuan/mt, down 210 yuan/mt from the previous trading day, with actual market transactions at a premium of around 10 yuan/mt over SMM Central China prices, unchanged from last Friday.

Regarding inventory, SMM's weekly inventory in major aluminum consumption regions recorded 49.5 mt, up 8,000 mt WoW. As the off-season deepens, market consumption gradually weakens, outflows from warehouses decline, and the inventory buildup turning point is approaching. Regional premiums and discounts are expected to turn downward.

Data source: SMM

》Subscribe to view SMM historical spot metal prices

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

7 hours ago

LME Aluminum Inventory Down 0.56% to 440,300 mt on March 17, Drops 8.56% Over Past Month

[SMM Aluminum Flash News] On March 17, LME aluminum inventory stood at 440,300 mt, down 2,500 mt from the previous day, a decrease of 0.56%; over the past week, LME aluminum inventory decreased by a cumulative 12,100 mt, a drop of 2.66%; over the past month, LME aluminum inventory decreased by a cumulative 41,200 mt, a decline of 8.56%.

7 hours ago

The aluminum ingot market showed a mild recovery, while aluminum billet processing fees remained under pressure [SMM South China Spot Aluminum Daily Review]

7 hours ago

8 hours ago

SHFE Cast Aluminum Alloy Warrants Drop to 53,078 MT, Down 362 MT from Previous Day

[SMM Flash News] SHFE data showed that as of March 17, the total registered volume of cast aluminum alloy warrants was 53,078 mt, a decrease of 362 mt from the previous trading day. By region, the total registered volumes were Shanghai (4,508 mt, down 92 mt), Guangdong (18,792 mt, down 300 mt), Jiangsu (6,818 mt, up 392 mt), Zhejiang (17,338 mt, down 332 mt), Chongqing (4,114 mt, unchanged), and Sichuan (1,508 mt, down 30 mt).

8 hours ago