Futures Market: Overnight, the most-traded cast aluminium alloy AD2511 futures contract opened at RMB 19,830 per tonne, peaking at RMB 19,935 per tonne and bottoming at RMB 19,810 per tonne before closing at RMB 19,880 per tonne. The settlement marked a RMB 55 per tonne or 0.28 per cent increase from the previous trading day, with trading volume at 2,670 lots and open interest at 8,964 lots, dominated by bullish position increases.
Basis Report: SMM data shows that on July 1, the SMM ADC12 spot price maintained a theoretical premium of RMB 345 per tonne against the 10:15 AM closing price of the most-traded cast aluminium alloy contract (AD2511).
Aluminium Scrap Sector: Primary aluminium spot prices remained unchanged from the previous trading day, with SMM A00 aluminium closing at RMB 20,780 per tonne and aluminium scrap market prices stabilizing overall. Baled UBC scrap quotations concentrated at RMB 15,300-15,800 per tonne (tax excluded), while shredded aluminium tense scrap clustered at RMB 15,800-17,300 per tonne (tax excluded). By product category, baled UBC prices dropped RMB 100 per tonne MoM from the previous day, though localized material shortages prompted selective premium collections against market trends. Regarding scrap-to-primary spreads, the Foshan mixed aluminium extrusion scrap free of paint price difference widened RMB 20 per tonne to RMB 1,756 per tonne compared to last Friday, while the Jiangsu bare bright aluminium wire spread narrowed RMB 273 per tonne MoM to return to RMB 653 per tonne.
Overseas Markets: Imported ADC12 CIF quotations held steady at USD 2,450-2,480 per tonne, with import spot prices hovering near RMB 19,200 per tonne and instant import losses around RMB 800 per tonne. Thailand's domestic ADC12 tax-excluded quotations concentrated at 82-83 baht/kg.
Inventory Update: SMM statistics indicate that as of July 1, the combined social inventory of secondary aluminium alloy ingots across Foshan, Ningbo and Wuxi reached 21,048 tonnes, up 1,287 tonnes from the previous trading day.
Summary: Aluminium prices stabilized on Tuesday with limited ADC12 raw material fluctuations, keeping mainstream quotations stable. The SMM ADC12 price range held at RMB 20,000-20,200 per tonne, though actual transactions remained sluggish. Entering July, weak downstream order growth will continue to constrain ADC12 price upside, yet firm cost support provides a price floor. With no near-term consumption improvements anticipated and off-season effects deepening, ADC12 prices are expected to fluctuate rangebound.
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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