Continuous purchasing for market making, spot supply tightens [SMM South China Aluminum Spot Daily Review]

SMM June 10 news:

[SMM] On June 10, SMM A00 aluminum (Foshan) was reported at 23,750, down 100, with a discount of 75 against the current month’s contract, narrowing by 40 (unit: yuan/mt).

Today, futures plunged significantly, but spot aluminum in south China showed strong resilience. Accelerated inventory destocking underpinned a tight circulation, and combined with persistently low absolute prices, holders held prices firm and held back from selling, avoiding a repeat of the previous collapse pattern after the spot-futures price spread had strengthened. Mainstream quotations stabilized at premiums of 0 to +10 yuan/mt, with few downward adjustments. On the demand side, downstream users showed no sign of bearish sentiment and steadily restocked at lower prices with strong buying interest. Traders simultaneously fulfilled rigid procurement needs, while large players continued to raise their bid prices for purchases and market making. With tight supply-demand pattern between buyers and sellers, overall market transactions were decent. Spot transaction prices were concentrated in a discount of 95 yuan/mt to 55 yuan/mt against the SHFE aluminum 2606 contract.