Alumina was in the doldrums, with the AO2505 contract closing at RMB 2,816 per tonne overnight, down 0.81 per cent, and open interest decreased by 744 lots to 132,000 lots. SHFE aluminium was also in the doldrums, with the AL2505 contract closing at RMB 19,680 per tonne overnight, down 0.18 per cent, and open interest increased by 3,445 lots to 204,000 lots.
Image for representational purposes only
On the spot side, SMM alumina prices continued to retreat to RMB 2,868.5 per tonne. Spot premiums for aluminium ingots shifted from RMB 20 per tonne to a discount of RMB 40 per tonne, with Foshan A00 prices rebounding to RMB 19,740 per tonne, on par with Wuxi A00. Downstream aluminium billet processing fees remained stable in Henan, increased by RMB 20 per tonne in Linyi, and decreased in Xinjiang, Baotou, Nanchang, Wuxi, and Guangdong by RMB 30-120 per tonne.
Aluminium rod 1A60 processing fees remained stable, while 6/8-series processing fees were unchanged, and low-carbon aluminium rod processing fees increased by RMB 179 per tonne. Alumina experienced concentrated maintenance, but both warrants and raw material inventories at aluminium plants were on the rise.
Alumina supply tightened but failed to reduce inventory, with the decline halting but the rebound insufficient. The US announced exemptions for some products from reciprocal tariffs, alleviating market panic sentiment and gradually returning to a fundamental perspective.
After a sharp decline in aluminium prices, downstream restocking volumes significantly increased, and aluminium prices rebounded amid destocking. Due to tariffs, some end-users adopted a cautious wait-and-see approach, making it relatively difficult to negotiate new export orders at this stage. Additionally, with the distributed PV installation rush approaching the 430 period, consumption faces gradual deceleration pressure. Spot prices have shifted from premiums to discounts, and excessive rush to buy amid continuous price rises should be approached with caution.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
Responses
