Social inventory buildup, weakening premium expectations amid slight inventory buildup, with generally sluggish market transactions [SMM Spot Aluminum Midday Review]

Published: May 19, 2025 11:00

Save

[SMM Midday Spot Aluminum Review: Social Inventory Buildup, Premiums Expected to Weaken, Market Transactions Remain Sluggish] On the inventory side, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory stood at 585,000 mt on May 19, with an inventory buildup of 4,000 mt compared to the previous day. In the short term, with high aluminum prices and an increase in inventory arrivals, market transactions have slowed down, and there is insufficient upward momentum for premiums. It is expected that premiums and discounts will be in the doldrums in the subsequent period.

SMM, May 19 News

Today, SHFE aluminum fluctuated downward in the morning session, with a significant pullback in the opening center. The closing price during the first trading period was 20,155 yuan/mt. In terms of spot market performance, aluminum prices returned to above 20,000 yuan/mt, and trading activity in east China and Gongyi markets weakened, with a slight inventory buildup in the fundamental market.

Specifically, trading sentiment in east China weakened today, with transactions mainly driven by traders. Some aluminum smelters were actively delivering and selling, and subsequent market transactions reached a premium/discount of -10 yuan/mt against the contract. End-users reported a slowdown in orders, and raw materials were mainly purchased as needed. Today, SMM A00 aluminum was quoted at 20,230 yuan/mt, down 40 yuan/mt from the previous trading day, with a premium of 70 against the 06 contract, unchanged from the previous trading day.

In the central China market, there was a relatively large amount of cargo offered today, but transactions were difficult. Today's transactions in the central China market were mainly concentrated on cargo offered at a premium/discount of -20 to -10 yuan/mt against SMM central China, with transactions at -20 yuan/mt. SMM central China A00 aluminum was recorded at 20,150 yuan/mt against the SHFE aluminum 2506 contract, down 50 yuan/mt from the previous trading day. The price spread between central China and east China was 80 yuan/mt, widening by 10 yuan/mt from the previous trading day, with a discount of 10 against the 2506 contract.

In terms of inventory, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory stood at 585,000 mt on May 19, up 4,000 mt from the previous day. In the short term, with high aluminum prices and an increase in inventory arrivals, market trading activity has weakened, and there is insufficient upward momentum for premium increases. It is expected that premiums and discounts will remain in the doldrums in the subsequent period.

Data source: SMM

》Subscribe 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 for 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

1 hour ago

Aluminum Futures Rally, Central China Market Sees Rebound in Trading Sentiment and Premiums

SHFE aluminum futures rallied again during the night session. In the central China market, pre-market transaction quotes were relatively low. Traders tended to restock in large volumes at deep premiums - when prices dipped, and with Friday approaching, downstream processing enterprises showed a rebound in purchasing and stockpiling sentiment. Overall market trading sentiment recovered, driving quotes gradually higher. Ultimately, actual transaction prices in the central China market were around a premium - of 110-150 yuan/mt against the SHFE aluminum September contract.

1 hour ago

China's Secondary Aluminum Ingot Inventory Rises by 174 mt to 13,396 mt

[SMM Aluminum Flash] China's social inventory of secondary aluminum ingots in major consumption areas stood at 13,396 mt today, an increase of 174 mt from the previous day.

1 hour ago

2 hours ago

[Aluminum futures extend rebound with center moving higher; spot aluminum remains stable across the board; supply growth continues to weigh on prices - SMM Alumina Morning Comment]

2 hours ago