SMM January 6 News:
In terms of aluminum ingot in South China, on January 6, the SMM A00 aluminum (Foshan) average price was 23,860 yuan/mt, a single-day increase of 610 yuan/mt, at a discount of 270 yuan/mt against the front-month contract, narrowing by 10 yuan/mt from yesterday. On the eve of the contract rollover, suppliers had strong bullish sentiment, generally holding prices firm and even hoarding goods, with quotes shifting to +20 yuan/mt above the average range, further tightening supply to a state of undersupply. Downstream purchasing enthusiasm was low, while traders, due to a high proportion of long-term contracts signed, showed a strong willingness to replenish stocks, leading to an undersupply situation; later, as futures prices fluctuated, suppliers adjusted prices accordingly, with only a small amount of restocking transactions.
Regarding aluminum billet in South China, on January 6, processing fees for SMM 6063 grade aluminum billet (Guangdong) across all specifications significantly pulled back under pressure, with Φ90/100 averaging -30 yuan/mt and Φ120 and above averaging -80 yuan/mt, down 140 yuan/mt from before the holiday. Amidst the continuous surge in base prices, there was a significant fear of high prices among downstream buyers, making it difficult to follow up with purchases, which were made only through substantial price cuts. Subsequently, discounts on processing fees became common, resulting in a market characterized by high prices but low trading activity, with weak transaction volumes.
