[SMM Spot Aluminum Midday Review: Aluminum Prices Break Through 20,000 Yuan/mt Threshold Again, Spot Premiums Suppressed]

According to SMM statistics, in terms of domestic aluminum billet inventory in two regions, the inventory of aluminum billet in Guangdong was 79,100 mt, and that in Wuxi was 16,900 mt, totaling 96,200 mt, a decrease of 1,000 mt MoM. Affected by the easing of Sino-US trade relations, the center of aluminum prices rose today, with spot aluminum returning to the 20,000 yuan/mt level. In the morning session, processing fees continued to stand firm on quotes, with some suppliers actively lowering their quotes to expedite shipments, leading to an increase in the circulation of low-priced goods. The transaction performance of some aluminum billet models was noteworthy, but market sentiment remained cautious, with trading sentiment weakening. Today, the processing fees in the Foshan aluminum billet market were reported at 360/410 yuan/mt, down by 40 yuan/mt; in the Wuxi market, they were reported at 370/420 yuan/mt, down by 30 yuan/mt; and in the Nanchang region, they remained unchanged at 400/450 yuan/mt. (Unit: yuan/mt)

[SMM Aluminum Morning Meeting Summary: Easing of China-U.S. Tariff Policies Stimulates Upside Movement in Aluminum Price Center] On the macro front, China's domestic favorable policies remain unchanged, while positive developments have emerged in the China-U.S. tariff game, potentially driving up the futures market. On the fundamental front, the reduction in domestic aluminum ingot inventory provides support for aluminum prices. Subsequent rush to meet deadlines during the China-U.S. tariff window period may continue to boost consumption, supporting the upside movement of aluminum prices. It is expected that domestic aluminum prices will mainly fluctuate upward in the short term.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 12 May, 2025