Active Month-End Shipments, Spot Generally Stable with Slight Fall [SMM South China Spot Aluminum Daily Review]

SMM May 29 News:

[SMM] On May 29, SMM A00 aluminum (Foshan) was quoted at 24,060, up 50, at a discount of 225 to the current-month contract, narrowing by 5 (unit: yuan/mt).

Futures edged up during the daytime session today, while spot cargo in South China was generally stable with slight fall. As absolute prices remained at a relatively low level and inventory declined significantly, most holders continued to hold prices firm for shipments in the morning. However, the spot-futures price spread had previously strengthened to a relatively high level, and combined with peak cash realization demand ahead of the month-end weekend, circulating supplies were notably loosened. Efforts to hold prices firm ultimately failed, and mainstream quotations reverted to lower levels with increased offerings. Mainstream quotations were at a discount of 20-0 yuan/mt, with sellers showing greater eagerness to make shipments. Although downstream buyers rushed to buy amid continuous price rise to replenish stocks, the incremental volume was limited, while traders pushed for lower prices and only accepted purchases at a discount for rigid demand. Demand lacked follow-through momentum, and overall transactions were lackluster. Spot transaction prices were concentrated at a premium of 205-245 yuan/mt to the SHFE aluminum 2606 contract.