SMM News, April 27:
[SMM] On April 27, SMM A00 aluminum (Foshan) was quoted at 24,590 yuan/mt, up 60, at a discount of 335 to the current-month contract, narrowing by 10 (unit: yuan/mt).
Aluminum prices stopped falling and rebounded slightly today, with the spot market showing a clearly divergent pattern. Affected by the earlier tightening of tax invoices, available supplies for the current month contracted, compounded by holders' reluctance to sell and a prominent mentality of controlling and managing shipments, with a strong willingness to raise prices proactively. Mid- and downstream enterprises had rigid procurement needs to make up for input tax credits and could only passively accept spot quotations. Meanwhile, downstream producers stockpiled in advance ahead of price increases on a phased basis to ensure continuity of production over the long holiday, with rigid demand providing certain support. In contrast, for next-month supplies, under the pressure of high social inventory, sellers had a strong desire to liquidate before the holiday, generally offering significantly wider discounts to facilitate shipments, resulting in ample supply of next-month available sources. However, market purchasing sentiment remained cautious, with buyers pushing for lower prices based on actual needs and purchasing cautiously, leading to insufficient overall uptake. Current spot quotation ranges were maintained at -20 to +20, with notable differences in trading performance across different categories of supplies and uneven transaction activity. Mainstream transaction prices in the market today were concentrated between a discount of 355 yuan/mt and a discount of 315 yuan/mt to the SHFE aluminum 05 contract.
