Circulation Generally Controllable, Spot Aluminum Stays Firm [SMM South China Spot Aluminum Daily Review]

SMM July 24 news:

The futures turned slightly lower today, while spot cargo in south China held relatively firm. Although the absolute price declined, it was still the last day of the monthly average long-term contract, with the day's price still significantly high. Combined with relatively high spot-futures price spreads, some suppliers actively adjusted prices and sold more to cash in at high levels, creating a certain drag. Others, based on the reality of continued destocking, firmly held prices steady and did not follow the low quoting. Mainstream quotations were at a discount of 10-0 yuan/mt, and circulation was controlled. Demand side, with price declines, downstream just-in-time procurement was moderate, offering support. Traders pushed for lower prices to purchase but failed to fully meet their needs, and then gradually raised prices to restock, particularly for cargoes with invoices dated this month. The supply-demand pattern tended to improve, and overall transactions showed a recovery. Spot transaction prices were concentrated at a premium of 45-65 yuan/mt over the SHFE aluminum 2608 contract.