Price Pullback Stimulates Transactions, Strong Performance of Spot Cargo in Central China [SMM Spot Aluminum Midday Review]

Published: May 9, 2025 13:26

Save

[SMM Midday Review of Spot Aluminum: Price Pullback Stimulates Transactions, Central China's Spot Market Shows Strong Performance] On the inventory side, according to SMM's domestic aluminum ingot inventory data, the inventory of aluminum ingots in three domestic locations stood at 487,400 mt on May 9, a destocking of 13,200 mt from the previous day. In the short term, the post-holiday pullback in aluminum prices has stimulated spot transactions, narrowing the spot discounts. However, it is still necessary to monitor the impact of changes in end-use demand due to the shift between peak and off-peak seasons in the downstream sector.

SMM, May 9

Today, SHFE aluminum fluctuated in the morning session, with the price center pulling back during the session. The closing price in the first trading session was 19,610 yuan/mt. In terms of the spot market performance, the price decline stimulated downstream procurement sentiment. The discounts in the east China and Gongyi markets narrowed. Specifically, spot aluminum in the Gongyi market continued to rise today, narrowing the price spread with east China to 0.

Specifically, the trading sentiment in east China was moderate today. Some traders reported an increase in shipments, and the market generally stood firm on quotes. However, transactions were not as smooth as yesterday. In the morning, inquiries revealed that transactions in the east China market were concentrated at prices of SMM+10 yuan/mt, with some brands trading at SMM+20 yuan/mt. Today, SMM A00 aluminum was quoted at 19,610 yuan/mt, down 10 yuan/mt from the previous trading day, at parity with the 05 contract, narrowing by 10 yuan/mt from the previous trading day.

In the central China market, shipments increased today, but supply was tight. Suppliers stood firm on quotes. Transactions in the central China market today were concentrated at prices of SMM central China +20 and +30 yuan/mt. SMM central China A00 aluminum was recorded at 19,610 yuan/mt against the SHFE aluminum 2505 contract, up 10 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was 0 yuan/mt, narrowing by 20 yuan/mt from the previous trading day, and at parity with the 2505 contract. The price spread between Shanghai and Henan narrowed, and some supply may enter the Gongyi market. Subsequent attention should be paid to the inhibitory effect of increased supply on premiums and discounts.

On the inventory side, according to SMM's domestic aluminum ingot inventory data, the domestic inventory of aluminum ingots in three regions was 487,400 mt on May 9, a destocking of 13,200 mt from yesterday. In the short term, the post-holiday aluminum price correction has stimulated spot transactions, narrowing spot discounts. However, subsequent attention should still be paid to the impact of changes in end-use demand due to the shift between peak and off-peak seasons downstream.

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

14 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.

14 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.

14 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.

14 hours ago