Aluminum prices crashed and hit bottom, demand significantly improved [SMM South China Spot Aluminum Daily Review]

SMM, June 24 –

Futures plummeted today, but spot aluminum in South China held firm. The absolute price dipped further to a recent low, yet holders' determination to hold prices firm grew even stronger. Although expectations of a strengthening spot-futures price spread led to a certain increase in actual shipments, most sellers held the line of no discounts, with large-scale ones not yielding a single cent. Mainstream quotations maintained a premium of 0 to +10 yuan/mt, while supply was slightly ample but restrained and orderly. Demand side, low prices significantly stimulated downstream concentrated restocking intentions, and procurement demand gradually increased. Major players once again stepped in to bid up prices and purchase for market making, prompting traders to follow suit in buying. Under the resonance of this dual demand, overall market trading performance was commendable. Spot transaction prices were concentrated in a premium of -80 to -40 yuan/mt against the SHFE aluminum 2607 contract.