SMM August 3 news:
Futures saw a sharp drop today, and spot aluminum in South China barely held steady. Among the three major consumption areas, only Foshan remained in a destocking cycle. The breakdown of absolute prices to new lows instead prompted holders to generally hold back from selling and be unwilling to make shipments at low levels. However, cash-in needs combined with bearish sentiment exerted dual pressure, and some sellers still opted for shipments at slight discounts, acting as a drag. Mainstream quotations were at discounts of -10 to 0 yuan/mt, and cargo availability increased somewhat. On the demand side, downstream buyers mainly engaged in steady buying at lows, showing no willingness to increase volumes amid the decline. Traders also merely took low-priced cargoes at a steady pace to fulfill orders. While demand provided bottom support, it lacked upward momentum. Both supply and demand sides were weak in momentum, and intraday trading was tepid. Spot transactions were mainly at premiums of 80 to 120 yuan/mt over the SHFE aluminum 2608 contract.
