Key Moments
- SHFE aluminium 2602 trended higher intraday, while SMM A00 aluminium settled at RMB 23,710 per tonne, up RMB 30 from the previous trading day.
- East and Central China sentiment indices for both buyers and sellers showed modest month-on-month gains, though overall trading interest stayed subdued.
- Aluminium ingot stocks in major consuming regions fell by 6,000 tonnes week-on-week, yet elevated prices continued to weigh on end-use demand.
Spot Market Overview
SHFE aluminium 2602 moved higher during the morning session, with the intraday price center standing slightly above the level of the previous trading day. Market participants showed a mild pickup in buying interest, but overall sentiment in spot trading remained weak.
In the broader spot market, mainstream deals were concluded mostly within a narrow band, from a discount of RMB 10 per tonne to a premium of RMB 10 per tonne. SMM A00 aluminium finished at RMB 23,710 per tonne, an increase of RMB 30 per tonne compared with the previous trading day, and traded at a discount of RMB 150 per tonne to the 2602 contract, widening by RMB 10 per tonne from the prior session.
East China Sentiment and Pricing
In East China, sentiment registered only slight improvements. The regional selling sentiment index came in at 2.89, up 0.04 month-on-month, while the buying sentiment index was 2.46, up 0.03 month-on-month. Despite these incremental gains, overall trading enthusiasm in the region stayed at a relatively low level.
| Region / Contract | Price (RMB/tonne) | Change vs Previous Trading Day (RMB/tonne) | Basis vs SHFE 2602 (RMB/tonne) | Change in Basis (RMB/tonne) | Selling Sentiment Index | Buying Sentiment Index |
|---|---|---|---|---|---|---|
| SMM A00 Aluminium (East China) | 23,710 | +30 | -150 | +10 | 2.89 (up 0.04 m-o-m) | 2.46 (up 0.03 m-o-m) |
Central China Market Dynamics
The Central China spot market recorded a marginal improvement compared with the previous day. Downstream processing companies cut production by about 20% in response to environmental protection-related controls. At the same time, road transportation gradually normalized after heavy snowfall ended in Henan, contributing to a slight rebound in buying sentiment.
With shipments from aluminium plants yet to fully return to normal, suppliers took the opportunity to lift their offer prices. Actual trades in Central China were concluded at a premium ranging from RMB 10 per tonne to RMB 40 per tonne over the Central China reference price.
| Metric | Central China Value | Change vs Previous Trading Day |
|---|---|---|
| SMM Central China Aluminium Price (RMB/tonne) | 23,610 | +50 |
| Basis vs SHFE 2602 (RMB/tonne) | -250 | +30 |
| Selling Sentiment Index | 2.68 | Flat m-o-m |
| Buying Sentiment Index | 2.21 | Up 0.02 m-o-m |
| Henan – Shanghai Price Spread (RMB/tonne) | -100 | Narrowed by 20 |
SMM central China aluminium closed at RMB 23,610 per tonne, up RMB 50 per tonne compared with the last trading day, and stood at a discount of RMB 250 per tonne to the 2602 contract, narrowing by RMB 30 per tonne from the previous trading day. The Henan-Shanghai price spread printed at -100 per tonne, a narrowing of RMB 20 per tonne compared with the prior session.
Inventory Trends and Near-Term Outlook
Aluminium ingot inventories across major consuming regions fell by 6,000 tonnes on a week-on-week basis as of Wednesday, with all three tracked regions showing destocking.
Despite the inventory draw, elevated aluminium prices are expected to continue constraining end-user demand in the near term. Aluminium ingots still face the risk of inventory accumulation, and spot premiums or discounts are likely to stay under pressure.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
