Prices fluctuated in the morning session, with reduced spot aluminum arrivals stimulating a narrowing of the discount. [SMM Spot Aluminum Midday Review]

Published: Mar 26, 2025 14:49

Save

SMM Spot Aluminum Midday Review: Prices Fluctuated in the Morning, Reduced Aluminum Spot Arrivals Stimulated Narrowing Discounts. Inventory side, according to SMM's domestic aluminum ingot social inventory in three regions, the inventory of mainstream consumption areas for aluminum ingots on March 26 was 682,500 mt, down 8,200 mt from the previous day. In the short term, the peak season background combined with the continued growth trend of aluminum use in new energy is expected to maintain the destocking trend of social inventory. Additionally, with fewer arrivals in mainstream consumption areas such as Wuxi, the premiums and discounts in the spot market may narrow.

SMM March 26 News

SHFE aluminum opened higher this morning but then fluctuated and dropped back slightly. The spot market was stimulated by continued destocking, coupled with insufficient arrivals, leading suppliers to stand firm on quotes and narrowing spot discounts. Downstream purchasing was generally as needed, with some manufacturers in east China stockpiling more.

Specifically, traders in east China stood firm on quotes, with the market offering SMM A00 at +10 yuan/mt, and some at +20 yuan/mt. Today, SMM A00 was at a discount of 10 yuan/mt against the SHFE aluminum 2504 contract, with SMM A00 aluminum ingot prices recorded at 20,670 yuan/mt, up 10 yuan/mt from the previous trading day. In central China, the market turned quiet due to a rebound in futures, with transactions near parity. SMM central China A00 was recorded at 20,570 yuan/mt against the SHFE aluminum 2504 contract, flat from the previous trading day, with the Henan-Shanghai price spread at -100 yuan/mt.

Inventory-wise, according to SMM's domestic aluminum ingot social inventory in three regions, mainstream consumption areas recorded 682,500 mt of aluminum ingot inventory on March 26, destocking 8,200 mt WoW. In the short term, against the backdrop of the peak season and the growing trend of aluminum use in new energy, social inventory is expected to continue destocking, with fewer arrivals in mainstream consumption areas such as Wuxi, likely narrowing premiums and discounts in the spot market.

Data source: SMM

》Order to view SMM metal spot historical 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

22 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

22 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

22 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

22 hours ago