Suppliers offloaded goods, and the premium in East China pulled back rapidly. [SMM Spot Aluminum Midday Review]

Published: Apr 22, 2025 13:58

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SMM Spot Aluminum Midday Review: Suppliers Dumping Goods, East China Premiums Pull Back Rapidly. Inventory-wise, according to SMM's domestic aluminum ingot inventory data from three regions, the domestic aluminum ingot inventory in three regions stood at 553,200 mt on April 22, with a buildup of 400 mt compared to Monday. In the short term, the fundamentals have not shown a significant weakening in demand, providing support for domestic aluminum prices. However, macro uncertainties have led to cautious market sentiment, and with the transition between peak and off-peak seasons approaching, spot aluminum premiums and discounts are expected to pull back slightly in the short term.

SMM April 22 News

SHFE aluminum fluctuated downward in the morning session today, trading above 19,800 yuan/mt during the first trading session. In the spot market, shipments in east China and central China were slightly difficult, mainly due to increased purchasing by suppliers. Specifically, spot premiums in east China pulled back significantly today. The market initially traded at parity with SMM prices, then gradually shifted to -10 and -20, primarily due to suppliers offloading cargoes and the pullback in the futures market, with downstream buyers purchasing as needed. SMM A00 aluminum was quoted at 19,880 yuan/mt, down 30 yuan/mt from the previous trading day, with a premium of 40 yuan/mt against the May contract, narrowing by 20 yuan/mt from the previous trading day.

Trading in central China continued to weaken, with suppliers offloading cargoes. In the morning, trading was mainly at -10 against SMM central China prices. SMM central China A00 aluminum was recorded at 19,810 yuan/mt against the SHFE 2505 contract, down 40 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -70 yuan/mt, with actual market trading at a discount of 10 yuan/mt against SMM central China prices and -30 yuan/mt against the 2505 contract.

On the inventory side, according to SMM data, domestic aluminum ingot inventories in three regions stood at 553,200 mt on April 22, up 4,000 mt from Monday. In the short term, the absence of a significant weakening in demand on the fundamental side provides support for domestic aluminum prices. However, macro uncertainties have led to cautious market sentiment, and with the transition between peak and off-peak seasons approaching, spot aluminum premiums and discounts are expected to drop back slightly.

Data source: SMM

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