SMM April 22 News:
[SMM] On April 22, SMM A00 aluminum (Foshan) was quoted at 24,570 yuan/mt, up 90 yuan/mt, at a discount of 340 yuan/mt to the current-month contract, with the discount widening by 10 yuan/mt.
Aluminum prices stopped falling and rebounded today; however, the overall spot and futures performance remained weak, with core market contradictions seeing no substantial relief. Current arrivals and social inventory continued to stay high, and combined with the rebound in futures prices, spot discounts came under further pressure. Most suppliers in the market prioritized recovering funds and accelerating shipments, generally offering flexible price concessions. Meanwhile, the spot-futures price spread had been running in a low range for an extended period, and some holders were willing to hold prices firm, actively defending price floors. Mainstream spot discounts in the market were concentrated at -20 to -10 yuan/mt, with ample circulation of par-priced cargoes. Demand-side follow-through was insufficient, as downstream enterprises resisted chasing higher prices and adopted a cautious and conservative approach to restocking. Trading sentiment weakened, with most participants reverting to a wait-and-see stance and showing reduced willingness to enter the market for purchases. Overall end-user support was lackluster, and actual market transactions showed mediocre performance. Mainstream transaction prices today were concentrated in the range of a discount of 360 yuan/mt to a discount of 320 yuan/mt against the SHFE aluminum 05 contract.
