SMM Spot Aluminum Market Comment: High Aluminum Prices Dented Buying Appetite

SHANGHAI, Aug 30 (SMM) – In early trading today, the most traded SHFE aluminum contract fluctuated upwards. Higher prices suppressed buying appetite. Today, the price of SMM A00 aluminum is about 130 yuan/mt higher than the 2309 contract, and the spot premium is 50 yuan/mt lower than that of the previous trading day, and the spot price is recorded at 19,040 yuan/mt. On the whole, on the supply side, the total domestic operating aluminum capacity is close to 42.7 million mt per year, reaching a historical high; on the demand side, the peak season is coming, hence market expectations have improved. Despite low stocks, suppressed demand due to high prices may cause spot premiums to shrink.