Futures edged lower today, and spot aluminum stabilized after weakness [SMM South China Aluminum Spot Daily Review]

SMM, July 15:

Today, the futures market saw some decline, and the spot market in South China stabilized from weakness. At the start of trading, suppliers tried to hold prices firm and sell slowly on dips, but bearish sentiment still prevailed, and there were slightly more participants actually looking to sell for cash, causing quotes to be generally lowered passively. However, as expectations of a further weakening spot-futures price spread emerged, the dual decline in aluminum prices and the spread stimulated some traders to increase purchases in the market. Discounted cargoes were quickly absorbed, and buyers even began to accept firm offers. The mainstream quotations steadily recovered from a discount of 10 yuan/mt to flat, with tightening liquidity, and transactions showed an improving trend. Spot transaction prices were concentrated at a discount of 20 yuan/mt to a premium of 20 yuan/mt against the SHFE aluminum 2607 contract.