Downstream Restocking Cautious, Weak Spot Aluminum Pattern in South China Hard to Break [SMM South China Spot Aluminum Daily Review]

SMM February 27 News:

Aluminum Ingot: On February 27, SMM A00 aluminum (Foshan) was quoted at 23,390-23,450 yuan/mt, with an average price of 23,420 yuan/mt, down 130 yuan/mt, and a discount of 160 yuan against the front-month contract. Inventory buildup pressure and bearish sentiment dominated the market. After suppliers failed to hold prices firm, they quickly lowered their shipment prices, with the discount fluctuating between -100 to +60 yuan/mt. Under the stimulus of falling prices, downstream buyers slightly restocked, leading to marginal improvement in transactions. However, as futures prices continued to fluctuate, buyers' bearish sentiment intensified, and their willingness to restock pulled back, resulting in almost no transactions by the end of the day.

Aluminum Billet: On February 27, the average processing fee for SMM 6063 grade aluminum billet (Guangdong) Φ90/100 was 160 yuan/mt, and for Φ120 and above, it was 110 yuan/mt, remaining unchanged from the previous day. Against the backdrop of declining base prices, processing fees held steady with a slight firmness. However, due to strong bearish sentiment among downstream players, post-holiday procurement demand remained weak. The decline in futures prices further dragged down transactions, prompting merchants to generally lower their quotes. Overall, transactions were bleak, and insufficient demand remained the key factor hindering market recovery.