Three price hikes within the week, spot aluminum abruptly shifts to premium [SMM South China Aluminum Spot Daily Review]

SMM June 11:

[Shanghai Metals Market] SMM A00 aluminum (Foshan) stood at 23,990 yuan/mt on June 11, up 240 yuan/mt, with a premium of 10 yuan/mt against the current-month contract and a discount of 80 yuan/mt against the next-month contract (unit: yuan/mt).

The futures market rebounded sharply today after halting its decline, leaving spot aluminum in South China slightly under pressure. Tight arrivals and strong destocking prompted holders to actively try for higher prices in the morning; however, as both outright prices and the spot-futures spread rose significantly, the willingness to sell and cash in gradually increased, supply eased somewhat, and mainstream quotations concentrated at a premium of 0 to +10 yuan/mt, with some material flowing at slight discounts. On the demand side, downstream buying on rallies persisted, lending some support; while ordinary traders reduced their purchasing, large players actively raised prices to purchase for market-making for the third time this week. Overall transactions were satisfactory. Spot deals were mainly done at a premium of -10 yuan/mt to 30 yuan/mt against the SHFE aluminum 2606 contract.