Trading in the East China market was sluggish, with spot aluminum discounts remaining flat. [SMM Spot Aluminum Midday Review]

Published: Dec 3, 2025 13:22

Save

SMM December 3:

The SHFE aluminum December contract mainly fluctuated upward in the morning session. In east China, market activity remained sluggish, with high absolute prices leading to poor downstream buying sentiment; some traders, optimistic about future aluminum prices, controlled shipments, causing a slight rebound in selling sentiment. Today's actual transaction prices were at a discount of 10 yuan/mt to parity against the SMM average price. The east China market selling sentiment index was 2.82 today, up 0.01 MoM; the purchasing sentiment index was 2.69, flat MoM. SMM A00 aluminum was quoted at 21,800 yuan/mt, up 90 yuan/mt from the previous trading day, at a discount of 50 yuan/mt against the December contract, flat from the previous trading day.

Trading in the central China market recovered today. Downstream enterprises, bullish on aluminum prices, showed improved purchasing sentiment, prompting traders to make substantial purchases. However, due to high absolute spot aluminum prices, the increase in premiums and discounts was relatively small. With limited spot supply available and buyers preferring large discounts, holders held prices firm and were reluctant to sell. Ultimately, actual transaction prices ranged from a discount of 10 yuan/mt to a premium of 20 yuan/mt against the central China price. The central China market selling sentiment index was 2.96 today, up 0.01 MoM; the purchasing sentiment index was 2.85, up 0.03 MoM. SMM central China aluminum closed at 21,680 yuan/mt, up 100 yuan/mt from the previous trading day, at a discount of 170 yuan/mt against the December contract, up 10 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -120 yuan/mt, up 10 yuan/mt from the previous trading day.

Inventory side, combined aluminum ingot inventories in major consumption areas totaled 453,000 mt on Wednesday, destocking 2,000 mt WoW.As the off-season deepens, the casting ingot rate increases, and demand marginally weakens; coupled with holders actively shipping and collecting payments by year-end, spot premiums and discounts are expected to remain under pressure in the short 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 to learn 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

23 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

23 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

23 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

23 hours ago