SMM February 3 news:
Aluminum ingot: On February 3, SMM A00 aluminum (Foshan) was quoted at 23,310 yuan/mt, down 400 yuan/mt, at a discount of 200 yuan/mt against the front-month contract. During the day, aluminum prices fell sharply. Suppliers generally held prices firm amid limited inventory pressure, but some chose to offer discounts to recoup funds. Downstream end-users restocked based on rigid demand at low prices, and trading was moderate in the morning session. However, in the afternoon, futures continued to decline, and buyers turned cautious, resulting in overall trading that was stronger earlier and weaker later.
Aluminum billet: On February 3, the average processing fee for SMM 6063 aluminum billet (Guangdong) specifications Φ90/100 was 50 yuan/mt, while for specifications Φ120 and above, the average processing fee was 0 yuan/mt, down about 20 yuan/mt from the previous day. Dragged down by the sharp decline in aluminum futures, processing fees struggled to rise, and market offers quickly moved lower to hit bottom. Although some producers tentatively raised processing fees, demand significantly shrank as end-users gradually entered holidays, with only a few plants making small restocks. Overall, volume discounts were offered, and trading was sluggish.
