SMM May 25 News:
Futures continued to edge down during the daytime session, and spot aluminum in South China remained in the doldrums. Both absolute prices and the spot-futures price spread weakened. In the early morning, holders attempted to hold prices firm and slow shipments. However, concentrated arrivals over the weekend led to a sharp inventory buildup, adding pressure, while widespread low-priced shipments of cargoes with invoices dated next month further weighed on the market. Sellers ultimately reverted to slight price cuts to stimulate transactions, with mainstream quotations at a discount of 10-0 yuan/mt, and liquidity was ample. Buyers gradually shifted from a wait-and-see stance of pushing for lower prices to making just-in-time procurement on dips to replenish current-month input tax credits, with almost no release of discretionary demand. Overall transactions were lackluster, and the market lacked notable highlights. Spot transaction prices were concentrated at a premium of -325 yuan/mt to -285 yuan/mt against the SHFE aluminum 2606 contract.
![Aluminum Liquid Aluminum Proportion Increased More Than Expectations in May, Expected to Edge Up in June [SMM Analysis]](https://imgqn.smm.cn/usercenter/JnyfJ20251217171654.jpg)
