Market Bottom Solidifies, Major Players Bid Up Prices for Market Making [SMM South China Spot Aluminum Daily Review]

SMM, June 23:

Futures edged lower today, while spot cargo in South China gradually stabilized and improved. Absolute prices fell again to a lower range, and coupled with steady inventory destocking, holders held prices firm and sold slowly; however, the narrowing of the nearby month’s positive spread between futures contracts led to expectations of a mild strengthening in the spot-futures price spread. Actual shipments were somewhat high, supply was relatively ample, and room for price hikes was limited. Mainstream quotations were concentrated at premiums of 0 to +10 yuan/mt. On the demand side, downstream users gradually stepped up restocking at lower prices, solidifying the market bottom; large traders actively bid up prices to purchase and make markets, prompting some traders to follow up with need-based purchases, forming a complementary effect that added icing on the cake. Overall transactions were satisfactory. Spot transaction prices were concentrated at premiums of -95 to -55 yuan/mt over the SHFE aluminum 2607 contract.