On August 24, 2026, in the derivatives market, aluminum futures on the Shanghai Futures Exchange showed slight volatility. The most-traded aluminum contract for October delivery rose by 0.61% by the end of Monday's daytime trading and increased by 0.13% overnight, closing the nighttime session at Yuan 23,815/tonne as of 1 a.m. Tuesday, August 25, 2026.
Iran issued a warning that it would close the Strait of Hormuz if the US continued its economic warfare. This revived concerns over supply disruptions from the Middle East, including aluminium production and logistics, injecting fresh geopolitical risk premium into the metal.
In addition, the US Treasury signaled it might expand long-term bond buybacks, which fueled concerns over fiscal sustainability and weighed on the dollar index. A softer dollar tends to support dollar-denominated commodities, including aluminium.
On August 24, 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 23,800/tonne, up Yuan 120/tonne from the previous day; in South China Yuan 23,960/tonne, up Yuan 110/tonne from the previous day; and in Central Plains Yuan 23,740/tonne, up Yuan 120/tonne from the previous day.
In early trading yesterday, SHFE aluminium traded in a narrow range. The traders' inventories in Central China edged down, holding around 160,000 tonnes. The spot basis held steady, with traders maintaining a steady pace of shipments and market liquidity tightening somewhat. Offers were quoted at a premium of Yuan 20/tonne to the benchmark. As aluminium prices moved higher, downstream buying interest moderated from the latter part of last week, with procurement largely limited to essential needs. Traders entered the market, on the other hand, prioritizing low-priced cargoes. Overall transaction activity was moderate.
In South China, the mainstream offers were mostly at flat levels, with a small number of traders firming at a premium. Later in the day, while mainstream offers remained flat, a few sellers lowered to a discount of Yuan 10/tonne. Transactions at discounted levels were modest. Overall, the traders showed no signs of slowing shipment, leaving spot liquidity ample. End-users continued to purchase for essential needs.
In summary, while the macro front sees many uncertainties, the fundamentals front is about to kick off the traditional seasonal high, coupled with robust aluminium semis exports even in the traditional off-season.
Written by Aggie Hu, huchenying@mysteel.com
