Futures Suddenly Turn to Surge, Spot Aluminum Under Pressure and Weaker [SMM South China Spot Aluminum Daily Commentary]

Published: Jul 14, 2026 15:50

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SMM July 14 news:

Today the futures market suddenly turned sharply higher, and spot aluminum in South China was under pressure and weak. A phased increase in arrivals, coinciding with a sharp rise in absolute prices, spurred suppliers to sell actively in the morning, especially for those with outright positions. Under expectations of a weakening spot-futures price spread, hedging positions intended to hold prices firm but had little effect in practice and were forced to follow the decline. Mainstream quotations were at discounts of 20 to 0 yuan/mt, with ample liquidity. Demand side, downstream users were mostly cautious toward high prices and stayed on the sidelines, leading to weaker purchasing demand. Traders initially had little intention to purchase, and only when discounts emerged did some enter the market to increase purchases for order settlement. Momentum on both supply and demand sides was weak, and overall transactions were subdued. Spot trading prices were centered at premiums of -5 to 35 yuan/mt over the SHFE aluminum 2607 contract.

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