[SMM Aluminum Express] Aluminum Prices Surge, Foundry Enterprises Show Significant Divergence

Published: Dec 4, 2025 17:04

Save

Today, SMM A00 aluminum prices surged to 22,020 yuan/mt. Although the foundry industry is in the traditional peak consumption season, enterprises show significant divergence in operations: Medium and large enterprises, which primarily rely on long-term contracts, benefit from stable order structures, making their raw material procurement relatively small affected by short-term aluminum price fluctuations. However, the rise in aluminum prices still drives a substantial increase in production costs. In contrast, small foundries, which depend mainly on sporadic orders, face squeezed profit margins due to high raw material costs, with some already falling into losses. Coupled with sluggish transmission of end-use demand leading to a reduction in orders, the operating rates of these enterprises have simultaneously declined.

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

10 mins ago

China's Cast Aluminum Alloy Ingots Inventory Rises 4th Week, Up 1,200 mt WoW, Down 53.8% YoY

[SMM Aluminum Alloy Flash] China's social inventory of cast aluminum alloy ingots stood at 33,000 mt this week, up 1,200 mt WoW, marking the fourth consecutive week of inventory buildup. On a YoY basis, current inventory decreased by 38,400 mt compared to the same period last year, a decline of 53.8%. Currently in the early stage of the peak season, downstream enterprises are purchasing mainly on rigid demand, and the demand side has yet to fully recover. Some spot traders' purchases have supplemented inbound inventory to a certain extent. In the short term, social inventory is expected to continue its slight buildup trend.

10 mins ago

17 mins ago

Alumina Retreats After Rapid Rise with Shrinking Volume Consolidation; Spot Index Stops Falling and Edges Up; Strong Supply and Weak Demand Pattern Unchanged [SMM Alumina Morning Comment]

17 mins ago

23 mins ago

SHFE aluminum continues to rise, Guangdong-Shanghai price spread significantly attracts cargo transfers [SMM Spot Aluminum Midday Review]

23 mins ago