Futures Continue to Plunge, Spot Aluminum Adjusts in the Doldrums [SMM South China Spot Aluminum Daily Review]

SMM, August 14:

Futures extended sharp losses today, while South China spot aluminum was in the doldrums and adjusted only slightly. With prices falling and inventory returning to a destocking path, holders initially tried to sell at firm prices in the morning. However, as bearish sentiment brewed near the weekend and the willingness to cash out early gradually increased, most sellers lowered prices slightly to offer discounts. Mainstream quotations were at discounts of -10 to 0 yuan/mt, supply was relatively ample, and some sellers still held premiums and sold slowly. On the demand side, downstream buyers initially stayed on the sidelines and bought little on expectations of lower prices, then gradually increased restocking at lower prices, though volumes remained limited. In the trade sector, participants mainly pushed for lower prices to absorb discounted cargoes, with only small volumes restocked at firm prices. Amid the supply-demand tug of war, overall trading was moderate. Spot transaction prices were concentrated at premiums of 60-100 yuan/mt over the SHFE aluminum 2608 contract.