SHFE aluminum fluctuated in the morning session, with differences in trading volumes across regions reflected [SMM Spot Aluminum Midday Review]

Published: Apr 29, 2025 13:40

Save

[SMM Midday Review of Spot Aluminum: SHFE Aluminum Fluctuates in Morning Trading, with Regional Differences in Transaction Volumes] Inventory side, according to SMM's data on aluminum ingot inventory in three domestic regions, the inventory of aluminum ingots in these three regions stood at 512,000 mt on April 29, a destocking of 15,800 mt from the previous day. In the short term, the downward space for backwardation before the holiday is relatively limited. However, as we enter May after the holiday, downstream consumption is expected to weaken to varying degrees. It is anticipated that the pace of inventory destocking will slow down, and backwardation will struggle to rise.

SMM, April 29 Report

Today, SHFE aluminum futures fluctuated in the morning session after a significant pullback earlier. Near 10 a.m., the futures market surged rapidly, approaching 20,000 yuan/mt. In the spot market, trading conditions differed between east China and central China. Specifically, in east China, spot aluminum supply was relatively ample, and downstream restocking sentiment slowed slightly due to rising aluminum prices, making it difficult to achieve a premium. Early in the morning, the market traded SMM aluminum at a discount of -10 yuan/mt to the average price. SMM A00 aluminum was reported at 20,020 yuan/mt, up 70 yuan/mt from the previous trading day, on par with the May contract, unchanged from the previous trading day.

In the central China market, after the market discount widened earlier, hedging traders were relatively active in purchasing. Coupled with downstream restocking demand ahead of the holiday, the market premium gradually improved. With several consecutive days of stockpiling, inventory in central China continued to decline, and spot aluminum supply tightened during the day. Suppliers took the opportunity to raise premiums for shipments, and market trading activity was moderate. SMM central China A00 aluminum was recorded at 19,960 yuan/mt against the SHFE aluminum 2505 contract, up 90 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -60 yuan/mt, narrowing by 20 yuan/mt from the previous trading day. Actual market transactions were at a premium of 10-20 yuan/mt against the SMM central China price and at a discount of 60 yuan/mt against the 2505 contract.

On the inventory side, according to SMM's data on aluminum ingot inventory in three domestic regions, the total inventory of aluminum ingots in these three regions was 512,000 mt on April 29, a destocking of 15,800 mt from the previous day. In the short term, the downward space for premiums before the holiday is relatively limited. However, after the holiday, as May approaches, downstream consumption is expected to weaken to varying degrees. It is anticipated that the destocking rate will slow down, and premiums will struggle to rise.

Data source: SMM

》Subscribe to view SMM's 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

20 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.

20 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.

20 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.

20 hours ago