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22 JULY 2026 SMM

Aluminium alloy futures range-bound game, bull-bear stalemate; spot cargo cost support fails to change weak demand

2MINS READ

Aluminium alloy

Stock image for referential purposes only

Futures side: Today, the aluminium alloy 2609 contract opened higher and consolidated during the day session. It opened at RMB 23,020 per tonne in the morning session, reached a daily high of RMB 23,070 per tonne, and dipped to a low of RMB 22,925 per tonne during the session. It was last priced at RMB 23,005 per tonne, up RMB 135 per tonne or 0.59 per cent from the settlement price.

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After a brief surge at the open, it encountered resistance and pulled back, with the price continuing to consolidate below the moving average. It gradually stabilised and rebounded in the afternoon session. Trading volume was 3,768 lots, and open interest edged up by 59 lots.

The tug-of-war between longs and shorts was intense, with significant resistance at the top and support at the bottom. Overall, it exhibited a V-shaped consolidation pattern, with a short-term lack of clear direction. The bulls' willingness to push upward was limited, and in the near term, it is expected to continue its range-bound movement.

Spot side: Today, ADC12 market quotes remained largely stable. Cost side, driven by a slight strengthening in primary aluminium prices, aluminium scrap prices partially followed the upward trend, with cost support for secondary aluminium alloy strengthening.

However, demand-side improvement remained limited, with end-user orders persistently weak and downstream purchases mainly for essential restocking, leading to average transaction performance among enterprises.

Under the dual influence of cost support and weak demand, the market's wait-and-see sentiment intensified further, as most manufacturers maintained stable prices for shipments and showed little willingness to adjust prices. ADC12 prices are expected to remain range-bound in the near term, with future trends depending on changes in aluminium scrap costs and the recovery of end-user orders.

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. 


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