SHFE aluminum edged up, spot aluminum was in the doldrums [SMM South China Spot Aluminum Daily Review]

SMM, June 29:

Futures edged up today, while spot aluminum in South China was in the doldrums. Inventory destocking remained steady and substantial, continuing to provide holders with the confidence to hold prices firm. In the morning, sellers continued their slow-selling pace to control prices. However, spot-futures spread expectations stayed at a relatively high level. Coupled with bearish sentiment disruptions and intensifying half-year cash realization needs, actual selling gradually shifted to larger volumes. As a result, supply loosened to a slightly surplus state, and mainstream quotations at discounts of 10 yuan/mt to par gradually dominated. Demand side, after aluminum prices stopped falling, downstream restocking demand was moderate, providing some bottom support. However, traders showed very little willingness to enter the market except for buying to meet delivery obligations; intermediate replenishment was almost completely absent, causing transactions to lose follow-through momentum. Spot transaction prices were concentrated at premiums of -30 yuan/mt to +10 yuan/mt against the SHFE aluminum 2607 contract.