Holders are actively offloading cargo, and spot premiums/discounts in east China are expected to remain under pressure in the short term. [SMM Spot Aluminum Midday Review]

Published: Nov 28, 2025 13:27

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SMM November 28:

SHFE aluminum's December contract mainly fluctuated upward, with its price center slightly rising, but showing no significant difference compared to yesterday's morning session. In east China, holders maintained active selling for cash returns; downstream stocking increased approaching the weekend. Today's actual transaction prices ranged from a discount of 10 yuan/mt to the SMM average price. Today, the selling sentiment index in the east China market was 2.85, down 0.07 MoM; the purchasing sentiment index was 2.75, down 0.03 MoM. On November 28, SMM A00 aluminum was quoted at 21,450 yuan/mt, down 10 yuan/mt from the previous trading day, at a discount of 40 yuan/mt against the December contract, flat from the previous trading day.

Trading in the central China market was relatively sluggish today, but aluminum prices saw a narrow correction, purchasing sentiment slightly rebounded, and market trading volume increased. The off-season theme was evident by the end of November, with traders' transaction volumes low. Holders were unwilling to sell at low prices, focusing mainly on long-term contract deliveries. Ultimately, market transaction prices ranged from a premium of 10 yuan to a discount of 10 yuan against the central China price. Today, the selling sentiment index in the central China market was 2.94, flat MoM; the purchasing sentiment index was 2.82, up 0.01 MoM. SMM central China price closed at 21,330 yuan/mt, down 10 yuan/mt from the previous trading day, at a discount of 160 yuan/mt against the December contract, flat from the previous trading day. The price spread between Henan and Shanghai was -120 yuan/mt, flat from the previous trading day.

Inventory side, aluminum ingot inventories in major consumption areas totaled 441,000 mt on Friday, destocking 5,000 mt WoW.As the off-season deepens, casting ingot rates increase, and demand marginally weakens; coupled with holders actively selling for year-end cash returns, spot premiums/discounts are expected to be under pressure in the short term.

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