SHFE Aluminum Rises for Three Consecutive Days, Spot Aluminum Strong and Firm [SMM South China Aluminum Spot Daily Review]

SMM July 6 News:

The futures registered three consecutive increases today, and spot aluminum in South China remained strong and firm. The absolute price regained relatively high levels, prompting some unilateral cargo holders to lower prices to sell more at highs, creating disturbances; however, destocking hit a record magnitude and arrivals in the near term were still expected to remain tight, supporting the majority of suppliers to firmly hold prices firm and hold back from selling. Mainstream quotations were concentrated at a premium of 0 to +10 yuan/mt, mainly at premiums, with tight availability. On the demand side, downstream users had no intention to rush to buy amid the continuous rise and demand lacked elasticity, though just-in-time procurement still existed; large players actively raised prices to purchase and make markets, which drove trader participation in buying to increase somewhat, and the overall demand response was relatively strong. The supply-demand pattern was tight, and overall transactions were decent. Spot transaction prices were concentrated at premiums of 40 to 80 yuan/mt over the SHFE aluminum 2607 contract.