Approaching the Weekend, Prices Rise Again, Spot Aluminum Pressure Intensifies [SMM South China Spot Aluminum Daily Review]

SMM July 10:

Futures markets surged again today, intensifying pressure on spot aluminum in South China. As the weekend approached, higher absolute prices spurred outright holders to increase shipments and monetize, with many downward adjustments causing significant impact; hedged cargo intended to hold prices firm but was dragged down and passively followed suit, with mainstream quotations a discount of 20-10 yuan/mt, supply appearing even more abundant, and in fact, no shortage of even cheaper cargo. On the demand side, downstream buyers’ purchasing appetite was mediocre given the high prices, only pushing for lower prices and buying the bare minimum; traders remained on the sidelines, largely unwilling to enter the market to purchase. Overall demand was at a relative trough, resulting in dismal overall trading. Spot transaction prices were concentrated at a premium of 10-50 yuan/mt against the SHFE aluminum 2607 contract.