SMM June 8 News:
[Shanghai Metals Market] On June 8, SMM A00 aluminum (Foshan) was reported at 23,890, down 220, with a discount of 190 against the current-month contract, flat (unit: yuan/mt).
Futures plunged significantly today, while spot in South China remained steady with improvement. The low absolute price somewhat constrained outright sales. Combined with continued inventory destocking providing confidence support, although enthusiasm for shipments from hedging positions remained relatively high and liquidity was ample, the overall room for price concessions was limited, with mainstream quotations at a premium of 0~+10 yuan/mt. The narrowing forward month spread kept spot-futures price spread expectations relatively stable at high levels, further strengthening sellers' resolve in quoting. Demand side, end-users shifted from a wait-and-see attitude to steady bargain buying at lower prices, while traders also gradually entered the market to purchase. Buyer momentum clearly recovered, and market transactions were moderate. Spot transaction prices were concentrated at a range of discount of 210 yuan/mt to 170 yuan/mt against the SHFE aluminum 2606 contract.
