Aluminum Prices Dropped Sharply, Spot Market Remained Weak [SMM Spot Aluminum Midday Review]

Published: May 7, 2026 11:51

Save

SMM May 7 update:

The SHFE aluminum 2605 contract fluctuated downward in early trading, with the overall price center moving lower compared to the previous trading day. Current invoicing constraints led to a contraction in market trade shipments. Downstream buyers adopted a stronger wait-and-see sentiment today, with purchase willingness cooling. Dragged by weak spot buying, mainstream transactions in the market were concentrated around SMM A00 aluminum minus 10 yuan/mt to the average price. Today, the east China market shipment sentiment index was 2.65, down 0.01 MoM; the purchase sentiment index was 2.6, down 0.2 MoM.

The trading atmosphere in the central China market weakened further compared to the previous day, with overall invoicing quotas continuing to decline and insufficient market trading confidence. Buyers mostly concentrated between 8:00 and 8:30 AM. Suppliers initially showed strong willingness to hold prices firm, but subsequent transactions were sluggish, with quotes trending lower. Transaction prices for invoiced shipments on the day were slightly higher than normal shipments. The actual transaction price range in the central China market was concentrated between central China price plus 20 yuan and central China price minus 10 yuan, with mainstream transactions at central China price plus 10 yuan. Today, the central China market shipment sentiment index was 2.82, down 0.01 MoM; the purchase sentiment index was 2.27, down 0.01 MoM.

Inventory side, aluminum ingot inventory in major consumption areas fell 0.35 WoW today, with all three regions showing a destocking trend.

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

4 mins ago

【SMM Aluminum Flash News】Turkey's Zahit Aluminium expands extrusion capacity with new 47-MN press

Zahit Aluminium has commissioned a new 12-inch, 47-MN extrusion press at its production facility in Andana, Turkey. The company said the press has been operating successfully for several months, delivering stable performance and reliable production of aluminium profiles for structural, architectural, framing and photovoltaic applications. The extrusion press was supplied by Italy-based Danieli Breda and is equipped with isothermal extrusion technology to maintain controlled temperatures at the press exit and ensure consistent product quality throughout the production process. The new press processes 1,500 mm billets with dead-cycle times of less than 17 seconds, including the burp cycle. It also incorporates Danieli Breda's ESED 4.0 energy-saving system, which helps reduce electricity consumption during operation.

4 mins ago

5 mins ago

【SMM Aluminum Flash News】UK’s aluminium scrap requirement estimated to hit 6Mt by 2035

The UK has an ambitious aluminium scrap equation to solve. Domestic industry is forecast to require as much as 6 million tonnes of aluminium scrap for recycling by 2035 to support the government’s projected 8 million tonnes of aluminium demand across sectors. Yet much of the metal needed to support that future is already flowing in the opposite direction. The UK exports almost half the aluminium scrap it generates, while imports fill only 27 per cent of the resulting gap. The trend has continued into 2026, with scrap exports rising 9 per cent year on year to 217,611 tonnes during January–April, from 200,374 tonnes a year earlier. Scrap is becoming increasingly important at home, but overseas buyers are competing for the same material.

5 mins ago

7 mins ago

【SMM Aluminum Flash News】Wychavon launches campaign to increase aluminium foil recycling

Wychavon District Council has launched a new campaign in partnership with Alupro to encourage residents to recycle more aluminium foil and other aluminium packaging through its kerbside recycling scheme. As part of the campaign, residents are being advised to separate used aluminium trays and cooking foil from other waste, scrunch the foil into a ball and place it in their green recycling bins. The awareness programme includes social media campaigns, advertisements at petrol stations, on waste collection vehicles and at railway stations.

7 mins ago