SHFE Aluminum Fluctuated Downward, Trading Sentiment Diverged in East and Central China [SMM Spot Aluminum Midday Review]

Published: Feb 5, 2026 15:05

Save

SMM February 5:

SHFE aluminum 2602 fluctuated downward in the morning session, with the price center lower than the previous trading day. Affected by the decline in aluminum prices, overall market procurement sentiment rose, narrowing the overall market spot premiums/discounts. Mainstream transaction prices were concentrated at a premium of 20 yuan/mt to 30 yuan/mt. Today, the east China market selling sentiment index was 2.84, down 0.02 MoM; the purchasing sentiment index was 2.69, up 0.15 MoM. SMM A00 aluminum closed at 23,340 yuan/mt, down 420 yuan/mt from the previous trading day, at a discount of 180 yuan/mt against the 2602 contract, up 30 yuan/mt from the previous trading day.

Trading sentiment in the central China market weakened today. End-use consumption softened and the Chinese New Year break is expected to start, leading to a decrease in raw material stockpiling demand from downstream processing enterprises. On the selling side, suppliers showed a strong willingness to hold prices firm and were reluctant to sell. Although the market dipped slightly, premium/discount prices remained high. Ultimately, actual transaction prices in the central China market hovered between a premium of 10 yuan/mt to 40 yuan/mt against the central China price. Today, the central China market selling sentiment index was 2.74, down 0.04 MoM; the purchasing sentiment index was 2.24, down 0.06 MoM. SMM central China price closed at 23,240 yuan/mt, down 400 yuan/mt from the previous trading day, at a discount of 280 yuan/mt against the 2602 contract, up 50 yuan/mt from the previous trading day. The Henan-Shanghai price spread was -100 yuan/mt, narrowing by 20 yuan/mt from the previous trading day.

Inventory side, aluminum ingot inventory in major consumption areas increased by 1,500 mt MoM today, with the main sources of inventory buildup being Guangdong and Gongyi. In the short term, high aluminum prices may continue to suppress end-use demand, coupled with the impact of the downstream Chinese New Year break. 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.

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

1 hour ago

SHFE Cast Aluminum Alloy Warrants Drop to 66,546 mt on Feb 5

[SMM Flash] SHFE data shows that on February 5, the total registered volume of cast aluminum alloy warrants was 66,546 mt, a decrease of 245 mt compared with the previous trading day. By region: Shanghai (5,388 mt, up 447 mt), Guangdong (23,552 mt, down 90 mt), Jiangsu (9,496 mt, down 421 mt), Zhejiang (21,833 mt, down 151 mt), Chongqing (5,586 mt, down 30 mt), and Sichuan (691 mt, unchanged).

1 hour ago

2 hours ago

Macro Factors to Drive Aluminum Prices Lower Before Stabilizing Next Week, Short-Term Aluminum Prices Expected to Consolidate with Volatility [SMM Aluminum Weekly Review]

[SMM Aluminum Price Weekly Review: Aluminum Prices Fell Then Stabilized Under Macro Influences, Expected to Consolidate in the Short Term]

2 hours ago

ADC12 Secondary Aluminum Alloy Prices Decline

[SMM Aluminum Alloy Daily Review] Futures side, the aluminum alloy 2603 contract opened at 22,250 yuan/mt, with the futures fluctuating downward overall, breaking below the 22,000 yuan/mt mark. It hit a bottom of 21,860 yuan/mt during the day and finally closed at 21,915 yuan/mt, down 680 yuan/mt or 3.01% from the previous close, mainly driven by bulls reducing positions. Spot market side, the SMM ADC12 price dropped by 200 yuan/mt to 23,600 yuan/mt. As futures weakened again, secondary aluminum market offers generally followed the decline. Driven by the price pullback, downstream users mainly restocked on dips, leading to a slight improvement in transactions. Supply side, as the Chinese New Year approaches, secondary aluminum plants have successively clarified their production plans for t

2 hours ago