SHFE aluminum's price center declines, market becomes sluggish on the last trading day before the holiday [SMM spot aluminum midday review]

Published: May 30, 2025 13:14

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[SMM Midday Review of Spot Aluminum: SHFE Aluminum's Price Center Falls, Market Gradually Sluggish on Final Trading Day Before Holiday] In the morning session today, the price center of SHFE aluminum fell to oscillate around RMB 20,150/mt, below the daily average line. Selling sentiment in east China has risen compared to before, coupled with the diversion of some cargoes originally destined for south China to east China, the market's premium was suppressed, and transactions were conducted at the SMM average price. Today, SMM A00 aluminum was quoted at RMB 20,290/mt, down RMB 90/mt from the previous trading day, with a premium of RMB 110/mt against the June contract, unchanged from the previous trading day.

SMM News on May 30: In the morning session today, the center of SHFE aluminum prices fell to around 20,150 yuan/mt, oscillating below the daily average line. In east China, the willingness to sell increased compared to the previous period. Additionally, some cargoes originally destined for south China were redirected to east China, putting pressure on the spot premiums in the market. Transactions were concluded at the SMM average price. Today, SMM A00 aluminum was quoted at 20,290 yuan/mt, down 90 yuan/mt from the previous trading day, with a premium of 110 yuan/mt against the June contract, unchanged from the previous trading day.

In the central China market, after the decline in aluminum prices, downstream enterprises slightly restocked. However, the willingness of suppliers to sell significantly decreased. Spot premiums remained firm during the day, with a premium of around 10 yuan/mt against the SMM central China average price. Overall, consumption in central China showed a weakening trend, with downstream purchasing power slowing down. However, the in-transit cargoes in the market also declined MoM, resulting in a situation of weak supply and demand. There were slight differences between buyers and sellers, and the premiums remained stagnant. SMM central China A00 aluminum was recorded at 20,230 yuan/mt against the SHFE aluminum 2506 contract, down 80 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -60 yuan/mt, up 10 yuan/mt from the previous trading day, with a premium of 50 yuan/mt against the 2506 contract, up 10 yuan/mt.

In terms of inventory, as of May 30, the aluminum ingot inventory in three domestic regions stood at 390,000 mt, a decrease of 4,000 mt. Downstream stockpiling ahead of the holiday, coupled with the expected low arrivals in the market, led to tightening spot cargo availability. Spot premiums remained firm ahead of the holiday. After the holiday, with the slowdown in downstream consumption and inventory drawdown, premiums are expected to drop back slightly.

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