SHFE Aluminum Surged Today, Spot Market Remained Weak [SMM South China Spot Aluminum Daily Review]

SMM April 14 News:

[SMM] On April 14, SMM A00 aluminum (Foshan) was quoted at 24,630 yuan/mt, up 290, at a discount of 185 to the current-month contract, at a discount of 245 to the next-month contract, widening by 15 (unit: yuan/mt).

The SHFE aluminum 04 contract surged and then pulled back today. The spot market in South China performed extremely weak. On the first day of the new week, overall buyer purchasing sentiment weakened notably. Downstream buyers were reluctant to rush to buy amid continuous price rise, with purchasing momentum being sluggish. Traders also largely completed their long-term contract delivery schedules, and their pace of entering the market to purchase slowed down, with transactions increasingly showing a situation of quoted prices but no actual deals. Sellers faced dual pressures from surging absolute prices and high inventory levels. They actively accelerated profit-taking and aggressively lowered prices to offload cargoes, with some even selling at outright low prices to clear stock. Hedging sellers attempted to stabilize prices but received no response and were forced to follow suit in cutting prices. Mainstream transaction prices in today's market were concentrated in the range of a discount of 205 yuan/mt to a discount of 165 yuan/mt against the SHFE aluminum 04 contract.