Trading sentiment continued to weaken, with spot discounts in east China slightly expanding. [SMM Spot Aluminum Midday Review]

Published: Nov 26, 2025 13:51

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SMM November 26:

SHFE aluminum's December contract mainly moved within a narrow range. In east China, holders were mostly selling, as the off-season atmosphere intensified, and downstream buyers mainly made just-in-time procurement. The actual transaction price for cargoes with invoices dated this month was mostly at parity to a discount of about 10 yuan/mt against the SMM average price, while cargoes with invoices dated next month were mainly at a discount of 10 yuan/mt against the SMM average price. Today, the selling sentiment index in the east China market was 2.97, down 0.05 MoM; the purchasing sentiment index was 2.88, down 0.07 MoM. On November 26, SMM A00 aluminum closed at 21,400 yuan/mt, down 40 yuan/mt from the previous trading day, at a discount of 20 yuan/mt against the December contract, down 10 yuan/mt from the previous trading day.

Recently, downstream consumption weakened, and enterprises' purchase willingness was not high. Market transactions in central China continued to be sluggish. As long-term contracts for the year-end are expected to be signed soon, holders' willingness to hold prices firm strengthened, and transaction prices were relatively stable. The final market transaction price was mainly at parity with the central China price, hovering between a premium of 10 yuan/mt and a discount of 10 yuan/mt against the central China price. Today, the selling sentiment index in the central China market was 2.95, flat MoM; the purchasing sentiment index was 2.87, down 0.03 MoM. SMM central China closed at 21,290 yuan/mt, down 40 yuan/mt from the previous trading day, at a discount of 130 yuan/mt against the December contract, down 10 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -110 yuan/mt, flat from the previous trading day.

Inventory side, aluminum ingot inventory in major consumption areas totaled 451,000 mt on Wednesday, destocking 8,000 mt WoW.The off-season atmosphere gradually deepened, but downstream operating rates have not significantly weakened yet. Spot premiums and discounts are expected to mainly fluctuate within a narrow range in the short term.

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