SMM South China aluminum spot: South China aluminum prices continue to rise, and the spot market has shown signs of collapse.

On December 20th, Shanghai aluminum futures opened high and then declined. In the morning, the main contract continued to approach the 19,000 yuan mark. This week, the inventory in South China remained relatively strong, but after five consecutive increases in aluminum prices, the market generally expected the high premium to inevitably retract.

On Wednesday, the spot market has shown signs of collapse, as the aluminum prices are still high and significantly higher than the monthly average. With the end of the year approaching, traders are keen to clear their inventory and realize profits, leading to a gradual decline in prices. Quotes have been lowered from a premium of -20 to -40, and some even lower. The imbalance between supply and demand has caused the circulation to surpass demand, leading to a decrease in transactions and a trend towards sluggish sales.