SHFE aluminium futures show weak upside momentum, signalling limited short-term gains – 11 December 2025
Shanghai Futures Exchange (SHFE) aluminium closed modestly higher but with weak upward momentum, suggesting limited immediate price breakout despite firm fundamentals.
Summary :
In the morning session, the SHFE aluminium December contract fluctuated upward, but the absolute price pulled back compared to the previous trading day. Market sentiment in East China recovered, with downstream maintaining just-in-time procurement, while traders actively purchased. Spot discounts were significant, holders held prices firm and were reluctant to sell, with actual transactions mainly at parity to a premium of RMB 10 per tonne against the SMM average price, showing signs of narrowing spot discounts.
On Wednesday, the sales sentiment index in the east China market was 2.71, up 0.09 M-o-M; the purchase sentiment index was 2.63, up 0.03 M-o-M. SMM A00 aluminium closed at RMB 21,770 per tonne, down RMB 110 per tonne from the previous trading day, at a discount of RMB 90 per tonne against the December contract, flat from the previous trading day.
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