Futures Aluminum Prices Retreat, Spot Aluminum Trading Sentiment Recovers [SMM Aluminum Spot Market Midday Review]

Published: Dec 10, 2025 11:54

Save

SMM December 10 news:

SHFE aluminum December contract fluctuated upward in early trading but pulled back in absolute terms compared to the previous trading day. In east China, market sentiment recovered, downstream maintained just-in-time procurement, but traders actively purchased, spot discounts were significant, holders held prices firm and were reluctant to sell, actual transactions were mainly at parity to a premium of 10 yuan/mt against the SMM average price, and spot discounts showed signs of narrowing. Today's east China market sales sentiment index was 2.71, up 0.09 MoM; purchase sentiment index was 2.63, up 0.03 MoM. SMM A00 aluminum closed at 21,770 yuan/mt, down 110 yuan/mt from the previous trading day, at a discount of 90 yuan/mt against the December contract, flat from the previous trading day.

In central China, transactions remained steady today, futures absolute prices pulled back, downstream purchase willingness recovered, but the premium/discount and price spread between futures contracts were too wide, most holders adopted a wait-and-see approach, market shortage sentiment was strong, buyers successively raised prices, and market offers continued to rise. Final actual transaction prices ranged from a premium of 10 yuan/mt to a premium of 50 yuan/mt against the central China price. Today's central China market sales sentiment index was 2.78, down 0.08 MoM; purchase sentiment index was 2.79, up 0.01 MoM. SMM central China price closed at 21,660 yuan/mt, down 80 yuan/mt from the previous trading day, at a discount of 200 yuan/mt against the December contract, up 30 yuan/mt from the previous trading day, with the central China-east China price spread at -110 yuan/mt, up 30 yuan/mt from the previous trading day.

Inventory side, Wednesday's total aluminum ingot inventory in major consumption areas was 434,000 mt, destocking 5,500 mt MoM. Aluminum ingot inventory continued to show destocking, seasonal factors affected Xinjiang aluminum ingot transportation, some backlog formed in Xinjiang, and aluminum ingot inventory is expected to show a slow destocking trend in the short term. Short-term, absolute prices pulled back, traders are expected to hold prices firm to repair spot discounts, and spot discounts are expected to narrow.

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

22 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.

22 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.

22 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.

22 hours ago