Seller Support Still Exists, Long-Short Supply-Demand Seesaw [SMM South China Spot Aluminum Daily Review]

SMM August 24 News:

Futures continued to rise today, while spot cargo in South China was in the doldrums. Arrivals increased MoM but have not yet translated into actual inventory buildup; the absolute inventory remained low, still providing some support for sellers. Most holders chose to control prices and sell slowly, with only a few offering small concessions to test the market. Mainstream quotations were at a discount of yuan 10-0/mt, and cargo flows were generally under control. On the demand side, downstream players had weak acceptance of price rises, lacked momentum to rush to buy amid continuous price rise, and still primarily purchased as needed on a just-in-time basis. Traders' just-in-time procurement was moderate, with a strong willingness to take on non-premium cargoes, but overall flexible demand was lacking. Both bulls and bears were cautious, supply and demand were in a stalemate, and intraday trading was tepid. Spot transaction prices were concentrated at a premium of yuan 135/mt to yuan 175/mt over the SHFE aluminum 2609 contract.