Futures Stop Rising and Edge Down, Spot Aluminum Declines Instead of Rising [SMM South China Aluminum Spot Daily Review]

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.