SMM, September 30:
On the last trading day before the holiday, aluminum prices continued to edge lower, and the spot market remained weak. The backwardation structure of SHFE aluminum strengthened, with the premium on the next-month and far-month contracts actually running high. Ahead of the holiday, there was strong willingness to cash in on the elevated spot-futures price spread, and quotes quickly shifted from holding prices firm to lowering prices to stimulate shipments, with mainstream quotes ranging from a small discount to parity. Despite strong destocking, discounted cargoes were still not uncommon in circulation. On the demand side, activity largely ground to a halt, with only sporadic bargain-hunting restocking seen. Purchasing demand was nearly absent from the market, and transactions were few and far between. Spot transactions were concentrated at a premium of 240-280 yuan/mt over the SHFE aluminum 2610 contract.
