On October 26, 2026, in the derivatives market, aluminum futures on the Shanghai Futures Exchange showed slight volatility. The most-traded aluminum contract increased by 1.08% by the end of Monday's daytime trading and rose by 0.21% overnight, closing the nighttime session at Yuan 23,525/tonne as of 1 a.m. Tuesday, October 27, 2026.
Senior officials from four Middle Eastern countries (Iran, Saudi Arabia, Turkey, and Pakistan) held talks that signaled a de-escalation of geopolitical tensions. Iran clarified that the discussions did not involve its nuclear program, reducing tail risks of conflict escalation in the Middle East and potential disruption to the Strait of Hormuz. As a result, the geopolitical risk premium previously priced into aluminum faces downward pressure.
Meanwhile, the U.S. Treasury's plan to repurchase up to 6 billion dollar in longer-dated bonds could modestly improve long-end liquidity and ease valuation headwinds for commodities from interest rates. However, the scale is limited and does not constitute monetary expansion, making it unlikely to provide a trend-driving push.
On October 26, 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 23,970/tonne, up Yuan 300/tonne from the previous day; in South China Yuan 23,920/tonne, up Yuan 320/tonne from the previous day; and in Central Plains Yuan 23,810/tonne, up Yuan 290/tonne from the previous day.
Market participants in South China were active in offloading cargoes. Affected by prices, downstream buyers remained predominantly need-based, prioritizing discounted supplies. Spot circulation was ample, and overall trading was moderate.
Overall, aluminum futures posted modest gains overnight amid a mixed macro backdrop. Geopolitical risk premiums faced downward pressure after four Middle Eastern nations signaled de-escalation, while the U.S. Treasury's long-bond buyback offered only limited support to sentiment. In the physical market, South China sellers were active in offloading cargoes, but downstream buying stayed need-based with ample spot availability keeping overall turnover moderate.
