On October 20, 2026, in the derivatives market, aluminum futures on the Shanghai Futures Exchange showed slight volatility. The most-traded aluminum contract decreased by 0.04% by the end of Tuesday's daytime trading and rose by 0.15% overnight, closing the nighttime session at Yuan 23,345/tonne as of 1 a.m. Wednesday, October 21, 2026.
IEA Executive Director Fatih Birol said the agency would consider releasing more oil from emergency reserves if needed, while U.S. Treasury Secretary Scott Bessent noted that the U.S. bond market is functioning well and the economy is gradually emerging from the shadow of the energy shock.
For aluminum prices, a potential further strategic reserve release by the IEA would help compress the risk premium in crude and diesel markets, easing the "energy–inflation–rate hike" transmission and thereby reducing the financial drag from U.S. Treasury yields and the dollar on industrial metals such as aluminum. Bessent's emphasis on Treasury market stability and the fading energy shock also supports a repair in risk appetite, lending a near-term constructive bias to aluminum sentiment.
That said, reserve releases merely draw down inventories to provide a buffer; they do not resolve underlying energy supply frictions. Should tensions in the Middle East flare up again, an oil price rebound would quickly reassert downward pressure on aluminum.
On October 20, 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 23,530/tonne, down Yuan 120/tonne from the previous day; in South China Yuan 23,460/tonne, down Yuan 160/tonne from the previous day; and in Central Plains Yuan 23,400/tonne, down Yuan 130/tonne from the previous day.
In yesterday's early session, SHFE aluminum drifted lower. Traders' inventories in the Central Plains market edged down and held near 90,000 tonnes. Spot basis widened, with holders showing strong selling interest and overall supply in the market relatively ample. As aluminum prices retreated, downstream buyers sourced only on a need-to basis, staying largely on the sidelines; purchasing momentum softened. Traders stepped in to absorb low-priced material. Trading sentiment was cautious, and overall transaction volumes were on the light side.
According to Mysteel, the spot transaction price of A00 ingot in South China fell versus the prior session. Physical premiums remained in discount territory and the spot basis narrowed noticeably, leaving the South China A00 aluminum ingot spot market biased to the weak side.
Overall, IEA flagged more SPR releases and Bessent talked down energy-shock fears, easing rate-pressure headwinds. But spot markets stayed soft on October 20, South and Central China traded at wider discounts with cautious downstream buying.
