[SMM Spot Aluminum Midday Review: Spot Aluminum Recovers in Central China Amidst Cross-Regional Cargo Transfers] SMM News on June 25: In the morning session, the center of the front-month SHFE aluminum contract climbed slightly above 20,400 yuan/mt. Selling remained the main theme in east China. As cargoes from south China and other regions arrived in succession, the off-season atmosphere became more pronounced. Spot premiums were weak during the day, with transactions occurring at a discount of 10 yuan/mt against SMM. Today, SMM A00 aluminum was quoted at 20,530 yuan/mt, down 10 yuan/mt from the previous trading day, with a premium of 140 yuan/mt against the 07 contract, down 10 yuan/mt from the previous trading day.

June 25 News: According to SMM statistics, on June 18, the inventory of aluminum ingots in Guangdong was 152,500 mt; in Wuxi, it was 107,000 mt; and in Gongyi, it was 67,000 mt. The total inventory across these three locations was 326,500 mt, a decrease of 1,500 mt compared to the previous trading day.

[SMM Aluminum Morning Meeting Summary: Reduced Probability of Short-Term Conflict Escalation in the Middle East, Inventory Inflection Point Becomes Key to Aluminum Market Trends] On the macro front, the ceasefire between Israel and Iran has alleviated geopolitical risks, reducing the demand for capital flight, which is short-term bearish for aluminum prices. US Fed Chair Powell's neutral stance, coupled with potential expectations for US Fed interest rate cuts and pressure from Trump, may boost the economy, providing support for aluminum prices. The People's Bank of China (PBOC) and five other departments jointly issued a document to stimulate consumption, which is bullish for end-user aluminum demand. On the fundamental front, the operating capacity of domestic electrolytic aluminum remains stable, with the proportion of liquid aluminum maintaining a high level, and the market supply of casting ingots remains tight. Demand side, overall, most downstream sectors are in the traditional off-season, with significant production cuts feedback from downstream industries in central China. Local spot transactions have weakened, and the market transaction price has shown a continuous large discount. The weakening off-season demand in the PV and home appliance sectors cannot be ignored, with a significant pullback in the operating rates of related sectors. The wire and cable sector has experienced a decline in operating rates due to the completion of the previous delivery period and high aluminum prices. On the inventory front, the pace of destocking has slowed, and low inventory still provides support to the futures market. Inventory buildup occurred on Monday this week, and it is necessary to observe whether the destocking inflection point has officially formed. However, spot premiums/discounts have gradually pulled back. Overall, short-term aluminum prices are suppressed by inventory accumulation and geopolitical easing, but medium-term macro policies (such as domestic consumption stimulus and expectations for US Fed interest rate cuts) may boost demand. It is expected that short-term aluminum prices will be in the doldrums, and subsequent focus should be on changes in inventory and demand.

[SMM Morning Comment on Cast Aluminum Alloy: The most-traded contract fluctuated downward overnight, and the narrowing price difference between A00 aluminum and aluminum scrap highlights cost support] On Tuesday, SMM ADC12 prices remained stable at 19,900-20,100 yuan/mt. Pressured by the ongoing traditional off-season, demand remained weak, and market transactions were sluggish.

[ADC12 Price Daily Review: Imported ADC12 Prices Rise, Immediate Losses Intensify] In the spot market, today's SMM ADC12 prices remained stable at 19,900-20,100 yuan/mt. Suppressed by the ongoing traditional off-season, demand side performance was weak, and market transactions were sluggish.

According to SMM statistics, regarding the inventory of aluminum billets in two domestic locations, the inventory of aluminum billet in Guangdong was 64,200 mt, and the inventory of aluminum billet in Wuxi was 19,500 mt, totaling 84,000 mt, a decrease of 200 mt MoM. Today, the market was influenced by the "Israel-Hamas ceasefire agreement," leading to a significant drop in the price center of crude oil and a relaxation of international tensions. Coupled with the increasing trend in domestic inventory, domestic SHFE aluminum bulls retreated, and spot prices came under pressure and pulled back. In terms of aluminum billets, market demand has entered the off-season, and inventory has officially formed an inflection point, with an expected increase in regional arrivals. Today, aluminum prices fell sharply. Suppliers mainly refused to budge on prices, but downstream buyers held a pessimistic outlook on prices and generally adopted a strategy of driving down prices and slowing procurement. Insufficient rigid demand remained the main theme, and market feedback indicated mediocre transaction performance. As of June 24, 2025, the aluminum billet market in Foshan reported processing fees of 120/170 yuan/mt, an increase of 40 yuan/mt; Wuxi reported processing fees of 230/290 yuan/mt, up 70/50 yuan/mt; and Nanchang reported processing fees of 100/150 yuan/mt, up 50 yuan/mt. (Unit: yuan/mt)

At the 2025 SMM (2nd) Global Renewable Metal Industry Chain Summit  hosted by SMM Information & Technology Co., Ltd., Amar Singh, Secretary General of the Material Recycling Association of India, shared insights on the topic of "Global Recycled Metals Market Showdown: An In-Depth Analysis of India's Strengths and Challenges."