Holders Concentrated on Offloading, Spot Discounts Widened [SMM Spot Aluminum Midday Review]

Published: Dec 17, 2025 14:57

Save

SMM December 17:

The SHFE aluminum 2601 contract's trading center shifted upward during the morning session. The rise in absolute prices, combined with year-end sales for cash flow, prompted holders to offload goods collectively, leading to relatively ample supply in the spot market. Sellers lowered their offers, with quotations at discounts of 30 to 10 yuan/mt against the SMM average price. Buyers purchased cautiously, with large transactions mostly concentrated around discounts of 20 to 10 yuan/mt. Today, the selling sentiment index in the east China market was 2.63, down 0.20 MoM; the purchasing sentiment index was 2.51, down 0.07 MoM. SMM A00 aluminum was quoted at 21,750 yuan/mt, up 120 yuan/mt from the previous trading day, at a discount of 110 yuan/mt against the 2601 contract, down 10 yuan/mt from the previous trading day.

Trading in the central China market was relatively sluggish today. Downstream processing enterprises showed weak purchase willingness, leading to subdued purchasing activity among traders. Holders sold off large quantities, but market trading volume remained low, and offers continued to decline. Eventually, the actual transaction price fell from a premium of 10 yuan/mt against the central China price before the market opened to a discount of 20 yuan/mt. Today, the selling sentiment index in the central China market was 2.74, up 0.02 MoM; the purchasing sentiment index was 2.69, down 0.02 MoM. SMM central China aluminum closed at 21,670 yuan/mt, up 110 yuan/mt from the previous trading day, at a discount of 190 yuan/mt against the 2601 contract, down 20 yuan/mt from the previous trading day. The price spread between Henan and Shanghai was -80 yuan/mt, down 10 yuan/mt from the previous trading day.

Inventory side, aluminum ingot inventory in major consumption areas destocked by 10,500 mt WoW on Wednesday. In the short term, the pullback in absolute prices supports sellers' willingness to hold prices firm, but weakening demand and reduced purchase willingness from downstream buyers are expected to keep spot discounts fluctuating.

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

13 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.

13 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.

13 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.

13 hours ago