Futures market: Overnight, the most-traded AD2511 cast aluminium alloy futures contract opened at RMB 19,435 per tonne, with a high of RMB 19,450 per tonne, a low of RMB 19,355 per tonne, and closed at RMB 19,395 per tonne. It fell by RMB 5 per tonne or 0.03 per cent from the previous settlement price. Trading volume reached 4,624 lots, and open interest stood at 10,382 lots.
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Spot-futures price spread daily report: According to SMM data, on June 11, the SMM ADC12 spot price was at a theoretical premium of RMB 525 per tonne over the closing price of the most-traded cast aluminium alloy futures contract (AD2511) at 10:15 a.m.
Industry news: 1. On the evening of June 10, multiple automakers announced that they would strictly adhere to the revised "Regulations on Ensuring Payments to Small and Medium-sized Enterprises" by the State Council. Starting immediately, they would uniformly compress the payment terms for suppliers to within 60 days, thereby promoting efficient capital flow within the industry chain and supporting the development of small and medium-sized enterprises. 2. According to CAAM data, in May, automobile production and sales reached 2.649 million units and 2.686 million units respectively, up 1.1 per cent and 3.7 per cent M-o-M, and up 11.6 per cent and 11.2 per cent Y-o-Y. Among them, NEV production and sales reached 1.27 million units and 1.307 million units, respectively, up 35 per cent and 36.9 per cent Y-o-Y. NEV sales accounted for 48.7 per cent of total new car sales.
Aluminium scrap: On Wednesday, aluminium scrap prices generally followed the rise in primary aluminium prices. Baled UBC aluminium scrap was quoted at RMB 15,050-15,550 per tonne (tax not included), while shredded aluminium tense scrap was quoted at RMB 15,700-17,200 per tonne (tax not included). Regionally, Shanghai, Jiangsu, Shandong, and other regions closely tracked aluminium prices, with price adjustments ranging from RMB 200-250 per tonne.
In Jiangxi, Foshan, Guizhou, and other regions, price adjustments lagged behind aluminium prices, ranging from RMB 100-150 per tonne. By product, prices for baled UBC and mixed aluminium extrusion scrap free of paint generally increased by RMB 50-100 per tonne, while prices for bare bright aluminium wire and shredded aluminium tense scrap rose by RMB 200 per tonne. It is expected that the aluminium scrap market will continue to fluctuate at highs, with the tight supply of aluminium tense scrap remaining unchanged and prices well supported. Wrought aluminium alloy scrap will continue to fluctuate rangebound with primary aluminium.
Overseas markets: On June 11, the CIF import price of ADC12 continued to rise slightly to USD 2,400-2,420 per tonne. The import spot price was reported around RMB 19,100 per tonne, with the immediate import loss widening again to RMB 600 per tonne. The local ADC12 price in Thailand (tax not included) was THB 81-81.5 per kilogramme.
Inventory: According to SMM statistics, on June 11, the combined daily social inventory of secondary aluminium alloy ingots in Foshan, Ningbo, and Wuxi totalled 16,183 tonnes, an increase of 279 tonnes from the previous trading day, with inventory buildup continuing.
Summary: Yesterday, the SMM A00 aluminium price rose by RMB 240 per tonne from the previous trading day to RMB 20,400 per tonne. The domestic SMM ADC12 price remained stable within the range of RMB 19,800-20,000 per tonne. Yesterday, the secondary aluminium alloy market generally held steady quotes or rose by RMB 100 per tonne.
Currently in the off-season, market transactions were average, and weak demand continued to suppress the upside room for prices, while the cost side provided some support. In the short term, the spot price of ADC12 is expected to fluctuate rangebound, and the inverted price pattern with A00 will continue.
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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