Trading sentiment recovers, spot discounts in east China narrow slightly [SMM Spot Aluminum Midday Review]

Published: Nov 19, 2025 13:35

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SMM November 19 news:

SHFE aluminum December contract retreated after rapid rise, hitting a high of 21,585 yuan/mt. In east China, absolute prices rebounded slightly but remained below previous levels. Procurement sentiment recovered, downstream enterprises' willingness to restock increased, and suppliers attempted to hold premiums and discounts firm. Actual transactions were mainly around parity to a premium of 10 yuan/mt against the SMM average price. Today, the east China market selling sentiment index was 3.11, up 0.01 MoM; the purchasing sentiment index was 3.06, up 0.05 MoM. Today, SMM A00 aluminum was quoted at 21,550 yuan/mt, up 90 yuan/mt from the previous trading day, at a discount of 20 yuan/mt against the December contract, up 10 yuan/mt from the previous trading day.

Downstream enterprises' raw material restocking sentiment rebounded significantly, driving a notable recovery in trader market sentiment in central China. Prices at night session continued to decline, suppliers' willingness to hold prices firm and sell increased. After opening, SHFE aluminum prices rose, trading volume in the central China market decreased somewhat, and the rise in premiums and discounts gradually weakened. Final transaction prices ranged from a premium of 10 yuan to a premium of 20 yuan against the central China price. Today, the central China market selling sentiment index was 2.93, up 0.01 MoM; the purchasing sentiment index was 2.98, up 0.03 MoM. SMM central China closed at 21,450 yuan/mt, up 110 yuan/mt from the previous trading day, at a discount of 120 yuan/mt against the December contract, up 30 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -100 yuan/mt, up 20 yuan/mt from the previous trading day.

Inventory side, combined aluminum ingot inventory in major consumption areas totaled 482,000 mt on Wednesday, destocking 10,500 mt WoW. Aluminum prices pulled back from previous levels, market transaction sentiment recovered, improved transactions are expected to provide momentum for stronger premiums and discounts. However, recent risks of off-season inventory buildup for aluminum ingots may periodically suppress spot premiums and discounts. Short-term spot premiums and discounts are expected to mainly fluctuate.

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