Futures Continue to Decline, Spot Aluminum Remains Supportive [SMM South China Spot Aluminum Daily Review]

Published: Jul 1, 2026 11:41

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SMM July 1 News:

The futures continued to dive today, while spot aluminum in South China stabilized and improved. The relentless decline in absolute prices had already locked up a significant portion of outright inventory, and the further widening of destocking reinforced hedged positions' willingness to hold prices firm and hold back from selling. Large-scale suppliers were particularly resolute, with mainstream quotations at premiums of 0 to +10 yuan/mt edging higher steadily, tightening liquidity. Demand side, downstream buyers showed good enthusiasm for buying on dips but had already hit a bottleneck, making it difficult to release large volumes for now; traders' follow-up purchases for rigid demand provided partial supplementation. Buyers and sellers formed some support amid the tight circulation, and overall transactions were satisfactory. Spot transaction prices concentrated at premiums of -20 yuan/mt to 20 yuan/mt against the SHFE aluminum 2607 contract.

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