Firm Resolve to Hold Prices Firm, Discount Narrowed Sharply [SMM South China Spot Aluminum Daily Review]

SMM News, May 28:

[SMM] On May 28, SMM A00 aluminum (Foshan) was quoted at 24,010, down 230, at a discount of 230 to the current-month contract, narrowing by 40 (unit: yuan/mt).

Futures dropped sharply again during the daytime session today, while spot aluminum in South China remained stable with a positive trend. Although absolute prices turned to a relatively significant decline, inventory maintained a steady destocking trend, providing certain bottom support for the market. Holders generally held prices firm and sold slowly on dips, with almost no price reductions despite relatively ample actual circulating volumes, demonstrating a resolute attitude toward price control. Downstream buyers took advantage of low prices to seek restocking, with some enterprises eagerly inquiring and purchasing early on, indicating a solid demand foundation. Major traders continued to push up prices and purchase to make markets, further boosting market sentiment. Mainstream quotations were at premiums of 0 to +10 yuan/mt, and overall transactions were moderate. Spot transaction prices were concentrated at discounts of 250 yuan/mt to 210 yuan/mt against the SHFE aluminum 2606 contract.