Aluminum Price Broke Down and Lost Ground, Spot-Futures Price Spread Surged Sharply [SMM South China Spot Aluminum Daily Review]

Published: Jun 25, 2026 12:08

Save

SMM June 25:

Today the futures market broke below the 23,000 support level, and the South China spot market shifted from strong to stable. The sharp drop in absolute price combined with strong destocking prompted cargo holders to actively try to raise prices in the morning, while buyers took advantage of the dip to secure rigid demand, still managing to match transactions. However, major players aggressively raised purchase prices to make a market, fueling expectations of a significant strengthening in the spot-futures price spread. Hedging positions then seized the opportunity to increase shipments and cash out. Mainstream quotations were gradually lowered from a premium of +10 yuan/mt to a discount of -10 yuan/mt, and supply became more ample. Downstream buyers were weighed down by bearish sentiment, and their purchasing follow-through was weak. Traders remained cautious and sidelined, with fewer entering the market to buy. Supply and demand both weakened, and actual transactions turned quiet. Spot transactions were concentrated at the SHFE aluminum 2607 contract with a spread of -35 yuan/mt to +25 yuan/mt.

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

1 hour ago

China's Secondary Aluminum Alloy Inventory Falls for 4th Week, Down 2,800 mt WoW

[SMM Aluminum Alloy Express] This week, social inventory of secondary aluminum alloy ingots in China fell by 2,800 mt WoW to 50,400 mt, marking the fourth consecutive week of destocking, with inventory levels pulling back further. Supply side, affected by tight supply of tax invoices, restricted procurement of compliant raw materials, and weakening end-use demand, operating rates of secondary aluminum enterprises continued to decline from June, and production release was somewhat suppressed, leading to a corresponding reduction in new warehouse inflows to social inventory. Demand side, the recent accelerating decline in aluminum alloy futures prices drove some downstream dip-buying and increased repurchase willingness among manufacturers, quickening the pace of warehouse withdrawals. In th

1 hour ago

SMM ADC12 Price Drops, Downstream Demand Weak Amid Tight Raw Material Supply

[SMM Aluminum Alloy Daily Review] Today, the SMM ADC12 price fell by 150 yuan/mt from the previous day to 23,850 yuan/mt. Amid the continuous price decline, the purchasing enthusiasm of downstream clients did not pick up significantly. Downstream players still mainly made just-in-time procurement, with a strong wait-and-see sentiment and insufficient restocking willingness. Meanwhile, aluminum scrap prices showed relative resilience. In particular, the supply of compliant raw materials remained tight. The price decline further squeezed the profits of aluminum scrap suppliers, leading to an intensified sentiment of holding back from selling and affecting raw material circulation to some extent.

1 hour ago

SHFE Aluminum Futures Continued Sharp Decline, Purchasing Sentiment in East China Rises [SMM Spot Aluminum Midday Review]

1 hour ago