SMM Jan. 21:
For aluminum ingot in South China, the average SMM A00 aluminum (Foshan) price was 23,740 yuan/mt on Jan. 21, up 20 yuan/mt on the day, at a discount of 115 yuan/mt against the front-month contract, narrowing by 5 yuan/mt from the previous day. With the absolute price and spot-futures price spread at low levels coupled with destocking support, suppliers showed strong willingness to hold prices firm, with only a small portion making minor price adjustments. The quotation range was 0 to +10 yuan/mt, and circulation was controllable. Downstream buyers, anticipating pre-holiday restocking, were bullish, while traders actively purchased to fulfill long-term contracts. Transactions were stable to improving. Later, as futures prices fluctuated, the quotation range widened to -60 to +40 yuan/mt, and low-priced supplies still saw transactions.
For aluminum billet in South China, the processing fees for various specifications of SMM 6063 aluminum billet (Guangdong) pulled back on Jan. 21. The average price for Φ90/100 was 110 yuan/mt, and for Φ120 and above specifications was 60 yuan/mt, up 20 yuan/mt from the previous day. During the session, futures prices showed resilience, downstream acceptance of low-priced supplies improved, restocking demand picked up, and merchants lowered offers with volume discounts, leading to a gradual recovery in transactions.
