Futures Rally Continues, Spot Aluminum Remains Under Pressure [SMM South China Aluminum Spot Daily Review]

SMM July 8:

Today, the futures uptrend persisted, and South China spot aluminum was under pressure as usual. The trading pace was largely consistent with yesterday. Some suppliers tried to hold prices firm and raise them by leveraging destocking, but most were stimulated by high aluminum prices and wide spot-futures price spreads to sell aggressively for cash. Mainstream quotations were at discounts of 10 yuan/mt to 0 yuan/mt, gradually lowered, with more circulating cargoes. On the demand side, downstream users still showed no intention to chase the rally for restocking, only maintaining some rigid demand purchases; traders were affected by bearish sentiment, leading to a stronger wait-and-see atmosphere and weakening in-market purchasing demand. The strong supply and weak demand pattern continued, and overall trading was sluggish. Spot aluminum transaction prices concentrated at premiums of ___ yuan/mt to ___ yuan/mt over the SHFE aluminum 2607 contract.