Market sentiment was weak, and aluminum premiums and discounts came under pressure [SMM Spot Aluminum Midday Review]

Published: Dec 30, 2025 14:04

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SMM December 31:

The SHFE aluminum 2601 contract rose in the morning session, with the price center moving higher compared to the previous trading day. Affected by the approaching holiday and year-end closing, market sentiment in east China was generally lower, and trading was relatively sluggish. Today, mainstream transaction prices mainly ranged from a discount of 20 yuan/mt to a discount of 10 yuan/mt against the SMM average price. The east China market selling sentiment index was 1.99, down 0.03 WoW; the buying sentiment index was 2.11, down 0.13 WoW. SMM A00 aluminum was quoted at 22,460 yuan/mt, up 280 yuan/mt from the previous trading day, at a discount of 210 yuan/mt against the 2601 contract, down 10 yuan/mt from the previous trading day.

Trading in the central China market remained sluggish today. Continued tightening of environmental protection-related controls, coupled with another rise in aluminum prices, further weakened demand. Additionally, with the approaching New Year holiday, some enterprises halted transactions for year-end closing, resulting in low overall market trading volume, primarily driven by traders selling off at low prices. Actual transaction prices in the central China market today hovered around parity to a discount of 40 yuan/mt against the central China price.

The central China market selling sentiment index was 2.66, down 0.06 WoW; the buying sentiment index was 1.5, down 0.03 WoW. SMM central China aluminum price closed at 22,240 yuan/mt, up 270 yuan/mt from the previous trading day, at a discount of 430 yuan/mt against the 2601 contract, down 20 yuan/mt from the previous trading day; the Henan-Shanghai price spread was -220 yuan/mt, down 10 yuan/mt from the previous trading day.

Inventory side, aluminum ingot inventories in major consumption areas increased by 2,000 mt WoW on Wednesday. Regional performance diverged, with Guangdong and Wuxi showing destocking trends, while Gongyi experienced inventory buildup. In the short term, high aluminum prices may continue to suppress end-use demand, aluminum ingots still face inventory buildup risks, and spot premiums/discounts are expected to remain under pressure.

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.

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