Inventory Buildup Pressure Coupled with Weak Demand Leads to Widening Spot Aluminum Discounts in South China [SMM South China Spot Aluminum Daily Review]

Published: Feb 25, 2026 18:13

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SMM February 25 news:

Aluminum ingot: On February 25, SMM A00 aluminum (Foshan) was quoted at 23,450 yuan/mt, down 20 yuan/mt, at a discount of 130 yuan against the front-month contract. High inventory and month-end liquidation pressure prompted suppliers to lower their offers. Downstream buyers only restocked based on rigid demand, while traders mainly adopted a wait-and-see stance. The rise in futures failed to boost spot transactions, and the discount continued to widen.

Aluminum billet: On February 25, the average price of SMM 6063 aluminum billet (Guangdong) Φ90/100 was 210 yuan/mt, and the average price for specifications Φ120 and above was 160 yuan/mt. Most processing fees held steady. The pace of downstream work resumption was relatively slow, with limited motivation to rush to buy amid continuous price rises. Market offers diverged, and actual transactions remained sluggish.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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