SMM News, April 21:
[SMM] On April 21, SMM A00 aluminum (Foshan) was quoted at 24,480, down 260, at a discount of 330 to the current-month contract, widening by 10 (unit: yuan/mt).
In the new week, the SHFE aluminum 05 contract fell sharply from highs consecutively. The spot market in South China showed slight stabilization, but under the continued impact of unclear tax invoice reduction policies, overall buyer purchasing sentiment remained subdued recently. Traders, wary of potential risks, reduced unnecessary purchases. However, bargain-hunting buyers increased today, and downstream rigid demand supported by buying on dips also grew. During the early session, under inventory buildup pressure and bearish sentiment, some suppliers took the lead in lowering offers to actively push shipments. However, the dual decline in absolute prices and spot-futures price spreads today provided room for suppliers to hold prices firm. Some suppliers proactively slowed down their shipment pace and resumed holding prices firm. Offers were gradually raised in the later session, and overall transactions recovered. Mainstream transaction prices in the market today were concentrated in the range of a discount of 350 yuan/mt to a discount of 310 yuan/mt against the SHFE aluminum 05 contract.
