Futures Extend Gains, Spot Aluminum Weakens Under Pressure [SMM South China Aluminum Spot Daily Review]

Published: Jul 7, 2026 11:29

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SMM July 7 News:

Futures continued to rise today, putting spot cargo in South China under pressure and weak. Yesterday, the spot-futures price spread surged temporarily, and absolute prices rose for the fourth straight day to an even higher level. Spurred by the dual highs, most suppliers actively sold to cash in and increased downward adjustments; a few held prices firm but with little effect. Mainstream quotations were at a discount of -10~0 yuan/mt, and circulation loosened. Demand side, downstream just-in-time procurement still had some momentum, but elastic demand lost steam amid high-price fears. Traders returned to push for lower prices, mainly purchasing based on just-in-time delivery, with insufficient response to high premiums. Momentum mismatch between supply and demand left overall transactions less than ideal. Spot transaction prices concentrated in the SHFE aluminum 2607 contract at premiums of 30 yuan/mt to 70 yuan/mt.

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