Futures and spot prices pulled back sharply, with some suppliers exhibiting strong wait-and-see sentiment [SMM Spot Aluminum Lunchtime Review]

Published: Jul 14, 2025 13:53

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[SMM Spot Aluminum Midday Review: Futures and Spot Prices Pull Back Sharply, Some Suppliers Show Strong Wait-and-See Sentiment] On the inventory side, according to SMM's domestic aluminum ingot inventory data, domestic electrolytic aluminum ingot inventory stood at 501,000 mt on July 14, with an inventory buildup of 35,000 mt compared to the previous trading day. In the short term, the casting ingot volume in the spot market has increased, and market supply has been replenished. Aluminum ingot inventory has turned to inventory buildup. Additionally, the off-season sentiment in the spot market is strong, downstream demand is poor, and there are significant production cuts. Purchase willingness is low, and transactions are made at spot discounts. It is expected that the spot discounts will show a widening trend in the short term.

SMM News on July 14

Today, SHFE aluminum opened significantly lower in the morning session, with the center pulling back by 400 yuan/mt. The futures market continued to operate at a low level throughout the session, eventually closing at 20,530 yuan/mt. In the morning, the spot market in major consumption areas saw average transactions. Some suppliers, seeing the rapid price pullback, resumed wait-and-see sentiment, and their shipments pulled back WoW. Specifically, in east China, the market continued to offer at -10 yuan/mt against the SMM average price in the morning. The overall purchase willingness of downstream buyers remained weak. Coupled with the wait-and-see sentiment from upstream suppliers, most transactions today were at SMM-10. Today, SMM A00 aluminum ingot prices were reported at 20,470 yuan/mt, down 320 yuan/mt from the previous trading day, with a spot discount of 60 yuan/mt against the 07 contract, narrowing by 10 yuan/mt from the previous trading day.

In the central China market, despite the significant decline in the futures market, influenced by inventory buildup and market transaction sentiment, the market continued to offer at a discount today. The spot market offered quotes at -20 and -10 yuan/mt against SMM central China prices. The price spread between Henan and Shanghai expanded to 140 yuan/mt, widening by 10 yuan/mt from the previous trading day, with a spot discount of 200 yuan/mt against the 2507 contract.

On the inventory side, according to SMM's domestic aluminum ingot inventory data, domestic electrolytic aluminum ingot inventory stood at 501,000 mt on July 14, an inventory buildup of 35,000 mt from the previous trading day. In the short term, with an increase in casting ingot volume in the spot market and a replenishment of market supply, aluminum ingot inventory has shifted to inventory buildup. Additionally, the off-season sentiment in the spot market is strong, with weak downstream demand and significant production cuts, low purchase willingness, and transactions at discounts. It is expected that the spot discount will show a widening trend in the short term.

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