SMM June 3 update:
[SMM] On June 3, SMM A00 aluminum (Foshan) was quoted at 24,320 yuan/mt, up 130, at a discount of 250 to the current-month contract, widening by 10 (unit: yuan/mt).
Futures continued to rise during today's daytime session, and the spot market landscape in South China remained largely similar to the previous day. Steady inventory destocking combined with expectations of a weakening spot-futures price spread amid rising prices prompted holders—primarily hedging-oriented—to hold prices firm and slow shipments. Some outright sellers again took advantage of high prices to increase their selling intensity, creating some downward drag. However, the former group overall maintained active control over the extent of concessions, with mainstream quotations at a discount of 10-0 yuan/mt. Supply-side pressure remained generally manageable. On the demand side, downstream willingness to rush to buy amid continuous price rise and restock weakened somewhat, with rigid support relatively lackluster. Traders continued their pace of gradually entering the market to purchase, with moderate demand for buying at a discount, which to some extent compensated for insufficient downstream momentum. Overall transactions were lukewarm. Spot transaction prices were concentrated at a premium of -270 yuan/mt to -230 yuan/mt over the SHFE aluminum 2606 contract.
