SHFE Aluminum Stops Falling and Edges Up; Market Entry Willingness Remains Low [SMM South China Spot Aluminum Daily Review]

SMM June 26 news:

The futures stopped falling and edged up today, while the South China spot market gradually weakened amid divergence. The low aluminum prices and strong destocking continued to support suppliers in holding prices firm when selling, and buyers maintained some rigid demand for cargoes with invoices dated this month, with this segment of deals being overall satisfactory. However, for cargoes with invoices dated next month, offers clearly outnumbered purchases, showing lackluster performance. Coupled with expectations that the spot-futures price spread would remain relatively high, the need to cash in for the half-year end drove sellers to sell relentlessly, causing supply to become increasingly abundant. Mainstream quotations were at a discount of 20 yuan/mt to a premium of 10 yuan/mt, generally lower. Downstream sentiment turned more bearish, and procurement fell short, while traders pushed for lower prices and stayed on the sidelines, showing low willingness to enter the market. Overall transactions significantly cooled. Spot transaction prices were concentrated at a premium of -30 yuan/mt to 10 yuan/mt against the SHFE aluminum 2607 contract.