Large Players Bid Up Prices to Make a Market, with Notable Boosting Effect [SMM South China Spot Aluminum Daily Review]

SMM, July 22:

The futures market stopped falling and surged today, with spot aluminum in South China showing strong resilience. Arrivals remained somewhat tight, and the destocking trend continued. Most suppliers, especially those above designated size, held strong confidence in the market outlook. Even as absolute prices rose, they firmly held prices firm and slowed selling, or even held back from selling more. Mainstream quotations were at a premium of 0 to +10 yuan/mt, with circulation relatively tight. On the demand side, downstream users made limited just-in-time procurement amid the price rise, and actual demand was not weak. Traders also actively entered the market to purchase at one point, and later a major player significantly raised prices to purchase and make a market, providing a clear boost. The supply-demand pattern was tight, and overall transactions were notable. Spot transaction prices were concentrated at a premium of 50 to 90 yuan/mt over the SHFE aluminum 2608 contract.