[SMM Aluminum Express] Aluminum Prices Surge, Foundry Enterprises Show Significant Divergence

Published: Dec 4, 2025 17:04

Save

Today, SMM A00 aluminum prices surged to 22,020 yuan/mt. Although the foundry industry is in the traditional peak consumption season, enterprises show significant divergence in operations: Medium and large enterprises, which primarily rely on long-term contracts, benefit from stable order structures, making their raw material procurement relatively small affected by short-term aluminum price fluctuations. However, the rise in aluminum prices still drives a substantial increase in production costs. In contrast, small foundries, which depend mainly on sporadic orders, face squeezed profit margins due to high raw material costs, with some already falling into losses. Coupled with sluggish transmission of end-use demand leading to a reduction in orders, the operating rates of these enterprises have simultaneously declined.

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

15 hours ago

SHFE: Cast Aluminum Alloy Warrants Down 727 mt to 35,955 mt on June 17

[SMM Flash] SHFE data show that on June 17, the total registered warrants for cast aluminum alloy were 35,955 mt, a decrease of 727 mt from the previous trading day. Of this total, the figures were Shanghai 3,345 mt (down 61 mt), Guangdong 6,105 mt (down 241 mt), Jiangsu 7,775 mt (down 92 mt), Zhejiang 12,028 mt (down 303 mt), Chongqing 5,857 mt (down 30 mt), and Sichuan 845 mt (up 0 mt).

15 hours ago

Hongmingchang Invites You to 2026 SMM (3rd) South China Nonferrous Metals Annual Conference

15 hours ago

Active selling in the market; transactions far from ideal [SMM South China Spot Aluminum Daily Review]

15 hours ago