The inventory performance in south China improved and the spot discounts began to narrow [SMM south China spot aluminum]

SHFE aluminum opened higher before went down in night trading, but mainly fluctuated in a narrow range in early trading. Today, aluminum prices continued to rise and reached above the 19,500 yuan/mt mark. Trading in the spot market was brisk as the holidays approached. As the supply of aluminum ingots declined, the supply tightened, holders held their offers firm. Today, the transaction price in south China ranged from -10-20 yuan/mt to an average price of +10 yuan/mt, and went all the way up to around +30 and +40 yuan/mt. With the support of rigid demand, the market's acceptance of high aluminum prices has significantly improved, and the recipients are preparing stocks for prices increases before the holiday. The willingness is strong and the overall transaction is positive. Today, the SMM Foshan aluminum price was quoted at a discount of 145 yuan/ton to the 2404 contract, narrowing by 40 yuan/ton. The average spot price was recorded at 19,520 yuan/ton, up 70 yuan/ton. During the second trading session, SHFE Aluminum fluctuated upwards, with holders following the upward adjustment, while receivers replenished supplies at lower prices, and some transactions were completed. The overall transaction price has a discount of 20 yuan/ton to a premium of 50 yuan/ton for the SMM south China aluminum price, and the transaction price is concentrated at 19,500-19,570 yuan/ton.
SMM believed that as the import window continued to close in early April and there is no hope of opening it in the short term, the impact of imported supply on the spot market weakened; in the traditional peak season, the market has been suffering at a discount for a long time, and aluminum ingot holders held back from selling. SMM predicts that inventory performance will improve in the short term, providing certain support for spot goods in south China. SMM predicts that south China will mainly maintain a discount in early April, but there is not much room for downward movement; and as the domestic inventory began to drop and aluminum prices went up, the spot inventory discount in south China will tend to narrow. It is necessary to continue to pay attention to the post-holiday consumption recovery and market transaction performance.