Sellers Actively Monetize, Spot Aluminum Adjusts in the Doldrums [SMM South China Spot Aluminum Daily Review]

SMM, July 20 –

Futures edged down today, and spot aluminum in South China was in the doldrums and adjusted weakly. In early trading, SHFE aluminum surged, bringing expectations of a significant rise, compounded by the spot-futures price spread which had also surged sharply last week and was at a relatively high level. The two highs spurred suppliers to actively lower prices and sell more for timely cash realization, even with some low-price disruptions. However, as the expectations of a significant rise failed to materialize, the low-price selling was gradually brought under control, with most returning to only small price adjustments. Purchasers also began to increase bargain hunting, with some demand response appearing. Mainstream quotations were at a discount of -10 to 0 yuan/mt, overall circulation was ample, and transactions recovered from the bottom. Spot transaction prices were concentrated at a premium of -15 yuan/mt to 25 yuan/mt against the SHFE aluminum 2608 contract.