On August 7, 2026, in the derivatives market, aluminum futures on the Shanghai Futures Exchange showed slight volatility. The most-traded aluminum contract for September delivery edged up by 0.86% by the end of Friday's daytime trading but decreased by 0.13% overnight, closing the nighttime session at Yuan 23,950/t as of 1 a.m. Monday, August 10, 2026.
Saudi Aramco's Jazan refinery was attacked again, and threats to Middle East energy security continue to escalate. In the US, the seasonally adjusted nonfarm payrolls for July unexpectedly fell by 23,000, the first decline since February, while the unemployment rate edged down to 4.1%, the lowest since June 2025.
On August 7, 2026, Mysteel's daily price assessment showed that the market price for A00 aluminum with a minimum purity of 99.7% in China was Yuan 23970 /tonne, up Yuan 170 /tonne from the previous day; in South China Yuan 24090 /tonne, up Yuan 180 /tonne from the previous day; and in Central Plains Yuan 23870 /tonne, up Yuan 200 /tonne from the previous day.
Aluminum prices extended a sharp upward move this week. Downstream purchasing momentum eased from prior levels, and traders remained cautious and on the sidelines. High temperatures during the off-season weighed on some downstream plants, which suspended operations for maintenance, while the pace of traders' inventory drawdown continued to slow. Overall market turnover weakened compared with last week.
In summary, the US nonfarm data boosted the nonferrous complex and aluminum kept rallying; the sharp price gain suppressed downstream demand release. However, the destocking pace in the off-season clearly slowed, and together with the persistent US–Iran conflict, rising market concerns over inflation risk have added some upward pressure to aluminum prices. Medium- to long-term upside room for aluminum still exists.
SHFE aluminum posted strong gains last Friday, trading with an upward bias. In the East China spot market, sentiment stabilized and improved as sustained inventory drawdowns bolstered bullish expectations. Most holders adopted a firm-price, slow-selling stance, yet with the weekend approaching and prices breaching the Yuan 24,000/t threshold, some sellers opted to offload more volumes to cash out.
As a result, spot quotes softened initially before strengthening, moving progressively from parity with the futures settlement to a premium. Spot availability tightened somewhat, while downstream buyers maintained rigid demand-driven purchases, providing decent support. Intermediate traders showed greater willingness to replenish, leading to overall brisk trading activity.
In the Central Plains market, traders' inventories continued to draw down, holding near 180,000 tonnes. The basis strengthened further, prompting holders to slow their sales pace and stand firm on offers, tightening available supply. Quotations were heard at premiums of Yuan 10–30/tonne. As aluminum prices extended their rally, downstream enterprises showed little appetite to chase highs, sticking to rigid procurement; however, their interest in bargain-hunting improved. Traders simultaneously stepped into the market to source cheaper cargoes. Overall transaction volumes remained fair.
