South China Aluminum: Oversupply Pressure Grows, Prices Drop Further

SHANGHAI, Feb. 25 (SMM) – SHFE 1305 aluminum contract prices moved lower after a low opening on Monday, dragging spot aluminum prices in south China down. Offers were below RMB 14,600/mt. Downstream producers began to come back online after the Lantern Festival, but time is needed before consumption can fully recover. Aluminum ingot continues to arrive, increasing oversupply pressure. Cargo holders were eager to sell at lower prices at the month’s end, with mainstream traded prices at RMB 14,560-14,580/mt. Overall trading was thin.