Aluminum futures rose in South China on Oct. 19, but physical-market activity weakened as sellers cut prices to move cargo. A wide backwardation between nearby Shanghai Futures Exchange contracts kept the basis under pressure, while concentrated deliveries from the southwest added to available supply.
Suppliers briefly tried to hold prices firm before returning to aggressive discounts and cash sales. Buyers showed limited interest in chasing a rising market, and restocking linked to basis adjustments was not strong enough to absorb the additional material. Transactions clustered at a premium of 235–275 yuan per metric ton over the SHFE November 2026 aluminum contract.
The pressure on spot trading contrasted with broader inventory data released on Oct. Post-holiday deliveries by downstream users remained steady, and the drawdown supported spot premiums in those regions.
The immediate market backdrop remained mixed. The futures market was still described as technically bearish, while production resumptions and new capacity outside China continued to weigh on forward sentiment. South China therefore entered the session with tightening inventories in the wider regional data but unusually weak spot circulation as incoming cargo temporarily outpaced demand.