SMM July 9 News: Today the futures market stopped rising and edged lower, while spot aluminum in South China declined instead of rising, weakening further. Bearish sentiment intensified. Suppliers were more eager to sell, with most seeking to cash out promptly; a few still held prices firm but failed to provide resistance, and mainstream quotations quickly slid to a discount of 20-0 yuan/mt, glutting the market. On the demand side, the decline in absolute prices was relatively small, and downstream buying sentiment barely improved, with purchasing still mainly as needed; traders had almost no demand to enter the market for purchases, and the supply-demand balance in the intermediate segment seemed somewhat collapsed. The strong-supply-weak-demand situation worsened, and overall trading was weak. Spot transaction prices were concentrated at premiums of 20-60 yuan/mt over the SHFE aluminum 2607 contract.

SMM July 8: Today, the futures uptrend persisted, and South China spot aluminum was under pressure as usual. The trading pace was largely consistent with yesterday. Some suppliers tried to hold prices firm and raise them by leveraging destocking, but most were stimulated by high aluminum prices and wide spot-futures price spreads to sell aggressively for cash. Mainstream quotations were at discounts of 10 yuan/mt to 0 yuan/mt, gradually lowered, with more circulating cargoes. On the demand side, downstream users still showed no intention to chase the rally for restocking, only maintaining some rigid demand purchases; traders were affected by bearish sentiment, leading to a stronger wait-and-see atmosphere and weakening in-market purchasing demand. The strong supply and weak demand pattern continued, and overall trading was sluggish. Spot aluminum transaction prices concentrated at premiums of ___ yuan/mt to ___ yuan/mt over the SHFE aluminum 2607 contract.

SMM July 7 News: Futures continued to rise today, putting spot cargo in South China under pressure and weak. Yesterday, the spot-futures price spread surged temporarily, and absolute prices rose for the fourth straight day to an even higher level. Spurred by the dual highs, most suppliers actively sold to cash in and increased downward adjustments; a few held prices firm but with little effect. Mainstream quotations were at a discount of -10~0 yuan/mt, and circulation loosened. Demand side, downstream just-in-time procurement still had some momentum, but elastic demand lost steam amid high-price fears. Traders returned to push for lower prices, mainly purchasing based on just-in-time delivery, with insufficient response to high premiums. Momentum mismatch between supply and demand left overall transactions less than ideal. Spot transaction prices concentrated in the SHFE aluminum 2607 contract at premiums of 30 yuan/mt to 70 yuan/mt.

SMM July 6 News: The futures registered three consecutive increases today, and spot aluminum in South China remained strong and firm. The absolute price regained relatively high levels, prompting some unilateral cargo holders to lower prices to sell more at highs, creating disturbances; however, destocking hit a record magnitude and arrivals in the near term were still expected to remain tight, supporting the majority of suppliers to firmly hold prices firm and hold back from selling. Mainstream quotations were concentrated at a premium of 0 to +10 yuan/mt, mainly at premiums, with tight availability. On the demand side, downstream users had no intention to rush to buy amid the continuous rise and demand lacked elasticity, though just-in-time procurement still existed; large players actively raised prices to purchase and make markets, which drove trader participation in buying to increase somewhat, and the overall demand response was relatively strong. The supply-demand pattern was tight, and overall transactions were decent. Spot transaction prices were concentrated at premiums of 40 to 80 yuan/mt over the SHFE aluminum 2607 contract.

SMM July 3: The daytime session continued to surge today, and spot southern China showed resilience. The consecutive rise in absolute prices spurred some speculative cargo to accelerate outflows for monetization, causing downward disruptions, but with high futures and a stagnant spot-futures price spread, hedging parties largely held prices firm, unwilling to join the rush to sell. Mainstream quotations were at a premium of -10 to +10 yuan/mt, with a certain gap, and overall circulation pressure remained controllable. Demand side, aluminum prices remaining relatively low supported stable just-in-time procurement by downstream players, and traders gradually entered the market to purchase at non-premium levels, with moderate absorption capacity, but both showed little willingness to chase the rally or add positions, lacking elasticity. The supply-demand pattern was lukewarm, and overall transactions were stable and predictable. Spot transactions concentrated at a premium of -20 yuan/mt to 20 yuan/mt against the SHFE aluminum 2607 contract.

SMM, July 2: The futures market stopped falling and surged today, while spot prices in South China struggled to stay firm. Spot-futures price spread expectations remained at relatively high levels, setting a tone of slightly ample circulation, and along with the rebound of absolute prices from lows prompting short-term speculative cargo to flow out and further supplement supply, suppliers' efforts to hold prices firm gradually weakened, with mainstream quotations at a premium of -10 to +10 yuan/mt, gradually declining. Demand side, downstream procurement pace remained largely unchanged, with considerable replenishments proceeding steadily but incremental volume insufficient; traders shifted from pushing for lower prices and a wait-and-see stance to partially increasing market purchases, and overall demand was not particularly weak. Momentum on both supply and demand sides was not prominent, and overall trading was tepid. Spot transaction prices were concentrated at a discount of 20 yuan/mt to a premium of 20 yuan/mt against the SHFE aluminum 2607 contract.

SMM June 16 news: [SMM] June 16 SMM A00 aluminum (Foshan) reported at 23,790, down 350, discount to the current month 90, flat (unit: yuan/mt) Today, the futures market suddenly plummeted, while South China spot aluminum struggled to remain firm. Absolute prices plunged sharply, forming a hedge against the steady destocking of inventory, and holders attempted to ride the momentum and raise prices in the morning; but with the spot-futures price spread expected to stay high, there remained room for hedging-based shipments, supply actually loosened somewhat, making it difficult to push prices higher, with mainstream quotations concentrated at a premium of 0 to +10 yuan/mt. Demand side, downstream players were initially somewhat cautious, after failing to push for lower prices, gradually shifted to buying the dip, providing some support; traders were also willing to take non-premium cargoes, and overall, transactions were satisfactory. Spot transaction prices were concentrated at a premium of -110 to -70 yuan/mt over the SHFE aluminum 2607 contract.

Discounts in the three regions widened to varying degrees from the beginning of the year to May, which was directly related to the sustained suppression of spot circulation by high inventory earlier. After entering June, as the destocking inflection point has gradually been established, premiums and discounts in the three regions have shown a divergent recovery trend...

SMM June 11: [Shanghai Metals Market] SMM A00 aluminum (Foshan) stood at 23,990 yuan/mt on June 11, up 240 yuan/mt, with a premium of 10 yuan/mt against the current-month contract and a discount of 80 yuan/mt against the next-month contract (unit: yuan/mt). The futures market rebounded sharply today after halting its decline, leaving spot aluminum in South China slightly under pressure. Tight arrivals and strong destocking prompted holders to actively try for higher prices in the morning; however, as both outright prices and the spot-futures spread rose significantly, the willingness to sell and cash in gradually increased, supply eased somewhat, and mainstream quotations concentrated at a premium of 0 to +10 yuan/mt, with some material flowing at slight discounts. On the demand side, downstream buying on rallies persisted, lending some support; while ordinary traders reduced their purchasing, large players actively raised prices to purchase for market-making for the third time this week. Overall transactions were satisfactory. Spot deals were mainly done at a premium of -10 yuan/mt to 30 yuan/mt against the SHFE aluminum 2606 contract.

SMM June 10 news: [SMM] On June 10, SMM A00 aluminum (Foshan) was reported at 23,750, down 100, with a discount of 75 against the current month’s contract, narrowing by 40 (unit: yuan/mt). Today, futures plunged significantly, but spot aluminum in south China showed strong resilience. Accelerated inventory destocking underpinned a tight circulation, and combined with persistently low absolute prices, holders held prices firm and held back from selling, avoiding a repeat of the previous collapse pattern after the spot-futures price spread had strengthened. Mainstream quotations stabilized at premiums of 0 to +10 yuan/mt, with few downward adjustments. On the demand side, downstream users showed no sign of bearish sentiment and steadily restocked at lower prices with strong buying interest. Traders simultaneously fulfilled rigid procurement needs, while large players continued to raise their bid prices for purchases and market making. With tight supply-demand pattern between buyers and sellers, overall market transactions were decent. Spot transaction prices were concentrated in a discount of 95 yuan/mt to 55 yuan/mt against the SHFE aluminum 2606 contract.