[SMM Spot Aluminum Midday Review: Post-Holiday Market Gradually Recovers, High Aluminum Prices Show Regional Differences]
SMM, February 10—SHFE aluminum front-month contract fluctuated during the early trading session today, with prices rising significantly in the second trading session. In east China, trading activity continued to recover, mainly driven by purchases among traders. However, SMM learned that downstream demand in the region recovered slightly better than market expectations, providing support for spot premiums/discounts to stand firm on quotes. Today, SMM A00 aluminum ingot was at a discount of 40 yuan/mt against the SHFE 2502 contract, unchanged from the previous trading day. SMM A00 aluminum ingot prices stood at 20,410 yuan/mt, down 60 yuan/mt from the previous trading day.
In the central China market, the overall market showed a weak supply and demand situation, with average terminal transactions and trading activity yet to recover. Some traders intended to stand firm on quotes, with actual transactions mainly at a discount of 10 yuan/mt against SMM Central China prices. Today, the Henan-SHFE price spread was around a discount of 130 yuan/mt. SMM Central China A00 aluminum ingot prices were recorded at 20,280 yuan/mt, down 60 yuan/mt from the previous trading day.
Regarding inventory, SMM domestic aluminum ingot social inventory data showed an inventory buildup of 75,000 mt to 729,000 mt as of February 10. In the short term, downstream consumption in aluminum processing has not fully recovered, and the market remains in a continuous inventory buildup phase. Under the oversupply situation, spot prices are expected to remain in a discount state in the short term. 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.
Data source: SMM 》Subscribe to view SMM historical spot metal prices