Destocking in fundamentals provides support for premiums, with downstream enterprises mainly purchasing as needed [SMM Spot Aluminum Midday Review]

Published: May 21, 2025 11:45

Save

[SMM Midday Review of Spot Aluminum: Fundamentals-Driven Destocking Provides Support for Premiums, Downstream Purchasing as Needed] Inventory side, according to SMM's domestic aluminum ingot inventory data, the three-region inventory of domestic aluminum ingots stood at 447,000 mt on May 21, with a destocking of 10,500 mt compared to the previous day. In the short term, the relatively low arrival of goods in east China is conducive to the rise in premiums and discounts, and attention should be paid to the changes in demand in the following days.

SMM, May 21 Report

Today, SHFE aluminum fluctuated in the morning session, with its center moving higher. From the perspective of spot market performance, social inventory destocking provided support for local spot premiums. Downstream enterprises purchased aluminum as needed amid high aluminum prices.

Specifically, trading in east China was moderate today. Limited arrivals provided strong support for prices. Overall, purchases were made as needed, and market transactions were concluded at prices ranging from the SMM average price to +10 yuan/mt above it. Today, SMM A00 aluminum was quoted at 20,310 yuan/mt, up 100 yuan/mt from the previous trading day, with a premium of 70 yuan/mt against the June contract, unchanged from the previous trading day.

In the central China market, transactions were mainly concluded at prices around the SMM central China average price. SMM central China A00 aluminum was recorded at 20,240 yuan/mt against the SHFE aluminum 2506 contract, up 100 yuan/mt from the previous trading day. The price spread between central China and east China was 70 yuan/mt, unchanged from the previous trading day, and it was on par with the 2506 contract.

In terms of inventory, according to SMM's domestic aluminum ingot inventory data, the three-region inventory of domestic aluminum ingots stood at 447,000 mt on May 21, a destocking of 10,500 mt from the previous day. In the short term, limited arrivals in east China are conducive to the firming up of premiums and discounts. Attention should be paid to changes in demand in the future.

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

8 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.

8 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.

8 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.

8 hours ago