Trading sentiment rebounded, and the expansion of spot discounts in east China halted. [SMM Spot Aluminum Midday Review]

Published: Nov 7, 2025 15:25

Save

SMM November 7 News:

SHFE aluminum fluctuated in the morning session, hovering around 21,570 yuan/mt. In east China, high absolute prices dampened end-users' buying sentiment, with sporadic transactions concluded at a small discount to the SMM average price. However, as the price spread between futures contracts widened slightly, traders showed moderate purchasing enthusiasm, with good transactions concluded at parity to the SMM average price and sporadic deals done at a small premium to the SMM average price. Today, the east China market selling sentiment index was 2.97, up 0.10 MoM; the buying sentiment index was 2.87, up 0.09 MoM. SMM A00 aluminum closed at 21,540 yuan/mt, up 180 yuan/mt from the previous trading day, at a discount of about 30 yuan/mt against the 2511 contract, flat from the previous trading day.

Amid high aluminum prices, trading in the central China market was relatively sluggish today. Pre-market offers were mostly at a premium of 10 yuan to the central China price, but significant fear of high prices among downstream players led to limited purchases. Actual transaction prices mainly ranged from parity to a premium of 10 yuan against the central China price. Today, the central China market selling sentiment index was 2.89, flat MoM; the buying sentiment index was 2.87, down 0.01 MoM. SMM central China aluminum closed at 21,420 yuan/mt, up 180 yuan/mt from the previous trading day, at a discount of 150 yuan/mt against the November contract, flat from the previous trading day. The price spread between Henan and Shanghai was -120 yuan/mt, unchanged from the previous trading day.

Inventory side, aluminum ingot inventories in major consumption areas totaled 464,500 mt on Friday, down 4,000 mt WoW. In the short term, high prices are suppressing downstream cargo pick-up and stockpiling activities, and aluminum ingot inventories are expected to face slow destocking. Spot premiums and discounts are likely to remain under pressure in the near term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

5 hours ago

China Aluminum Ingot Inventory Falls to 850,000 mt as Expected at End-August; What Is the September Destocking Outlook?

China’s aluminum ingot social inventory fell steadily from a phase high of 1.13 million mt in early July, with destocking of more than 170,000 mt in July alone. In August, the pace of destocking slowed marginally, with cumulative destocking of...

5 hours ago

8 hours ago

Cross-Regional Cargo Diversion Window Opens? South China Premiums Face Pullback in September [SMM Analysis]

Since mid-August, domestic aluminum ingot spot premiums showed notable regional divergence: spot premiums in south China (Foshan) against the SHFE aluminum 2609 contract continued to widen, and by the week of August 27 they had expanded by 125 yuan/mt to a premium of 220 yuan/mt; east China (Wuxi) A00 spot premiums remained near a discount of 20 yuan/mt to parity against the 09 contract. The divergence...

8 hours ago

9 hours ago

Aluminum Billet Processing Fees Plunge Below Cost Line; Foshan Market Consolidates Weakly at Lows [SMM Analysis]

As August drew to a close, looking back at China's aluminum billet market this month, "divergence" and "pressure" were the two most distinct key words. On one side was the resilient, eye-catching performance of aluminum prices; on the other was the continued slump in aluminum billet processing fees...

9 hours ago