Tight supply and limited new capacity support stable aluminium prices despite off-season demand lull – 06 November 2025
Some industry analysts note that although it’s the traditional off-season for consumption, the combination of constrained supply increases, tight scrap availability and steady demand for recycled metal is keeping market pressure bullish. ([AlCircle market summary Dec 4 2025](https://www.alcircle.com/press-release/the-price-spread-between-al-and-ad-contracts-breaks-through-the-rmb-1 000-mark-further-widening-116466)) alcircle+1
Summary :
According to SMM data, on December 4, the SMM ADC12 spot price showed a theoretical premium of RMB 590 per tonne against the closing price of the most-traded cast aluminium alloy contract (AD2601) at 10:15.
Warrant daily: SHFE data showed that on December 4, the total registered warrants for cast aluminium alloy stood at 66,164 tonnes, an increase of 1,607 tonnes from the previous trading day. By region: Shanghai (4,757 tonne, unchanged m-o-m), Guangdong (21,133 tonne, up 737 tonne m-o-m), Jiangsu (11,509 tonne, up 570 tonne m-o-m), Zhejiang (22,037 tonne, up 389 tonne m-o-m), Chongqing (6,308 tonne, unchanged m-o-m), and Sichuan (420 tonne, up 300 tonne m-o-m).
Aluminium scrap: On Thursday, spot primary aluminium prices rose significantly from the previous trading day, with SMM A00 aluminium closing at RMB 22,020 per tonne, and the aluminium scrap market followed the increase. Entering December, downstream demand for aluminium scrap showed clear divergence. Demand for scrap used in cast aluminium alloys remained stable with a slight increase, providing more support for consumption.
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