Center of aluminum price pulls back, with limited recovery in market transactions [SMM Spot Aluminum Midday Review]

SMM News on June 24: In the morning session, the center of the SHFE aluminum front-month contract fell to around 20,350 yuan/mt. The futures market pulled back slightly, with an increase in market inquiries. However, actual transactions still revolved around long-term contracts, and the spot market remained sluggish, with transactions concluded at a discount of 10 yuan/mt against SMM prices. Today, SMM A00 aluminum was quoted at 20,540 yuan/mt, down 110 yuan/mt from the previous trading day. It traded at a premium of 150 yuan/mt against the July contract, down 10 yuan/mt from the previous trading day.

In the central China market, amid the off-season atmosphere, production cuts among aluminum processing enterprises have become increasingly frequent. The market primarily revolves around long-term contract transactions, with sporadic spot order transactions. As the aluminum price center fell during the day, just-in-time procurement by processing material enterprises increased slightly, but the volume remained limited. The market concluded transactions at a discount of 20 yuan/mt against the SMM average price. SMM central China A00 aluminum was recorded at 20,360 yuan/mt against the SHFE aluminum 2507 contract, down 110 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -180 yuan/mt, unchanged from the previous trading day, and it traded at a discount of 30 yuan/mt against the 2507 contract.

On the inventory side, SMM's daily inventory was recorded at 328,000 mt, up 4,000 mt MoM. Amid the off-season atmosphere, downstream processing materials enterprises are adjusting their finished product inventories through production cuts. The spot market demand remains sluggish, and premiums will fall further.

》Subscribe to view SMM metal spot historical prices