Downstream Purchases Slow, Overall Transactions Limited [SMM South China Spot Aluminum Daily Review]

SMM, June 15 –

[SMM] On June 15, SMM A00 aluminum (Foshan) was reported at 24,140, unchanged, with a discount of 20 for the current month and a discount of 90 for the next month (unit: yuan/mt)

Today, the futures market stabilized and edged lower, with spot aluminum in South China in the doldrums. Tight weekend arrivals and a sharp inventory drawdown provided confidence support for holders, who held prices firm for shipments in the early session; however, with absolute prices and spot-futures price spreads at relatively high levels, monetization needs gradually took over, accelerating the shipment pace. Quotations were slightly lowered to a discount of -10 to 0 yuan/mt, with actual circulation being ample and even cheaper sources available. Demand side, after concentrated restocking last week, downstream users returned to a just-in-time purchasing pace today, showing no urgency in buying; traders pushed for lower prices, shifting to discount procurement, with marginal improvement in enthusiasm, but overall absorption capacity remained limited. Momentum on both ends was weak, and transactions were hardly ideal. Spot transaction prices were concentrated at a premium of -40 to 0 yuan/mt over the SHFE aluminum 2606 contract.