Futures Market: Overnight, the most-traded AD2511 cast aluminium alloy futures contract opened at RMB 19,500 per tonne, surging rapidly after the opening bell to reach a high of RMB 19,630 per tonne. It then fluctuated rangebound after pulling back, with the overall trend showing a narrow rangebound fluctuation after the initial surge. The lowest point was RMB 19,440 per tonne, and it finally closed at RMB 19,560 per tonne, up RMB 90 per tonne or 0.49 per cent from the previous close. Trading volume was 6,725 lots, and open interest was 9,026 lots.
Spot-Futures Price Spread Daily Report: According to SMM data, on June 16, the SMM ADC12 spot price was at a theoretical premium of RMB 605 per tonne over the closing price of the most-traded cast aluminium alloy futures contract (AD2511) at 10:15 a.m.
Aluminium Scrap Market: On Monday, the spot primary aluminium price continued to decline by RMB 100 per tonne from the previous trading day. SMM A00 aluminium closed at RMB 20,630 per tonne, with aluminium scrap market prices showing mixed performance. Baled UBC aluminium scrap was concentratedly quoted at RMB 15,350-15,850 per tonne (tax not included), while shredded aluminium tense scrap was concentratedly quoted at RMB 15,900-17,400 per tonne (tax not included). Regionally, Shanghai, Jiangsu, Shandong, and other regions closely followed aluminium price movements, with price adjustments ranging from RMB 50-100 per tonne. In Jiangxi, Hubei, Henan, Foshan, and other regions, price adjustments lagged behind aluminium price movements. After consecutive price increases following aluminium price movements last week, Monday's quotes remained unchanged from Friday, with a wait-and-see sentiment temporarily prevailing. It is expected that the aluminium scrap market will continue to fluctuate at highs.
Overseas Markets: The current CIF import price of ADC12 has slightly increased to USD 2,420-2,450 per tonne, while the import spot price remains stable at around RMB 19,200 per tonne, with the immediate import loss slightly widening to RMB 600 per tonne. The domestic ADC12 price in Thailand (tax not included) has temporarily stabilised at 82 Thai baht/kg.
Inventory: According to SMM statistics, the daily social inventory of secondary aluminium alloy ingots in Foshan, Ningbo, and Wuxi totaled 17,097 tonnes on June 16, an increase of 364 tonnes from the previous trading day.
Summary: Yesterday, the SMM A00 aluminium price fell by RMB 100 per tonne from the previous trading day to RMB 20,630 per tonne, while the domestic SMM ADC12 price remained stable within the range of RMB19,900-20,200 per tonne. Although aluminium prices showed a downward trend, the raw material end of secondary aluminium remained firm, providing certain support for ADC12 prices, with market quotes generally remaining stable. Currently in the traditional off-season, new orders are growing weakly, and persistent weakness in demand is suppressing the upside room for ADC12 prices. However, cost support still exists, and it is expected that ADC12 prices will remain mainly rangebound in the short term.
[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should make cautious decisions and should not rely on this as a substitute for independent judgment. Any decisions made by clients are unrelated to SMM.]
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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