Wuxi Destocking Stimulates Futures and Spot Price Rebound, Active Market Trading [SMM Spot Aluminum Midday Review]

Published: Feb 26, 2025 13:38

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[SMM Spot Aluminum Midday Review: Wuxi Destocking Stimulates Futures and Spot Prices Rebound, Active Market Trading]

This morning, SHFE aluminum front-month contract fluctuated, with the price center moving higher compared to the previous day. Additionally, the destocking of aluminum ingots in Wuxi stimulated market trading sentiment. Specifically, trading in east China was active, and spot discounts narrowed by 20 yuan/mt compared to the previous trading day. Today, SMM A00 aluminum ingot prices were at a discount of 30 yuan/mt against the SHFE 2503 contract, recording 20,530 yuan/mt, up 140 yuan/mt from the previous trading day.

In the central China market, stimulated by the rebound in futures and the easing of congestion at warehouses, traders were active, with transactions against SMM central China prices at +10-20 yuan/mt. Downstream purchases were slightly weaker, with transactions mainly concentrated at parity to +10 yuan/mt. Overall, spot discounts narrowed, with actual market transactions primarily at parity to +20 yuan/mt against SMM central China prices. Today, the Henan-Shanghai price spread was at a discount of around 120 yuan/mt. SMM central China A00 aluminum ingot prices were recorded at 20,410 yuan/mt against the SHFE 2503 contract, up 150 yuan/mt from the previous trading day.

Regarding inventory, according to SMM data on aluminum ingot social inventory in three domestic regions, as of February 26, destocking reached 2,500 mt, bringing the total to 724,900 mt. The rebound in aluminum prices, combined with destocking in Wuxi, led to active market trading today, with spot discounts narrowing significantly.

Data Source: SMM
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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.

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