Under cross-region cargo transfer, spot aluminum in central China recovers [SMM Spot Aluminum Midday Review]

SMM News on June 25: In the morning session, the center of SHFE aluminum front-month contract prices climbed slightly above 20,400 yuan/mt. Selling in east China remained the main theme. As shipments from south China and other regions arrived earlier, 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 the SMM average price. Today, SMM A00 aluminum was reported 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.

In the central China market, amid the off-season atmosphere, aluminum processing enterprises increasingly cut production, and the market was dominated by long-term contract transactions. However, as discounts in central China widened earlier, some shipments were diverted to Shandong, Hebei, Jiangsu, and other regions. Spot premiums in the local market recovered somewhat, with transactions occurring at the SMM average price. SMM central China A00 aluminum was recorded at 20,360 yuan/mt against the SHFE aluminum 2507 contract, unchanged from the previous trading day. The price spread between Henan and Shanghai was -170 yuan/mt, narrowing by 10 yuan/mt from the previous trading day, with a discount of 30 yuan/mt against the 2507 contract.

On the inventory side, SMM daily inventory was recorded at 326,500 mt, down 1,500 mt MoM. Amid the off-season atmosphere, downstream processors adjusted finished product inventories through production cuts. Demand in the spot market was sluggish, and premiums will further pull back.

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