SMM June 17:
[SMM] On June 17, SMM A00 aluminum (Foshan) stood at 23,840, up 50, a discount of 90 to the front-month contract, flat (unit: yuan/mt)
Today, futures edged up slightly, while spot aluminum in South China turned from strong to weak. Tight arrivals and significant destocking provided bottom support for holders. In the morning, they continued the pace of holding prices firm and raising them; however, the spot-futures price spread remained at a relatively high level. As the short holiday approached, risk-averse sentiment to liquidate gradually intensified, boosting selling enthusiasm and further easing circulation. Mainstream quotations were at premiums of 0 to +10 yuan/mt, and in practice, some small discounts had already emerged. Demand side, downstream rush-to-buy restocking demand was moderate, providing some absorption; traders' willingness to enter the market turned lower, only accepting relatively low-priced cargoes, with limited overall replenishment momentum. The momentum mismatched between the two sides, making transactions less than ideal. Spot transaction prices concentrated at premiums of -110 to -70 yuan/mt against the SHFE aluminum 2607 contract.
