Sharp Decline in Aluminum Prices with Moderate Transaction Performance

On May 7, SMM A00 aluminum was reported at 19,610 yuan/mt, down 240 yuan/mt from the previous trading day, with a discount of 20 against the May contract, unchanged from the previous trading day. On May 7, SMM A00 aluminum (Foshan) was reported at 19,560 yuan/mt, down 220 yuan/mt, with a discount of 65 against the current month, narrowing by 25. (Unit: yuan/mt)

According to SMM statistics, regarding the inventory of aluminum billet in two domestic locations, the inventory of aluminum billet in Guangdong was 86,100 mt, and the inventory of aluminum billet in Wuxi was 20,700 mt, totaling 106,800 mt, an increase of 600 mt MoM. Today, aluminum prices plummeted sharply, and processing fees continued to rise uniformly in the morning session. However, downstream players generally expected prices to fall after the holiday and still focused on driving down prices and purchasing as needed. The lack of support for futures prices during the session also made it difficult for processing fees to rise further. Most suppliers actively adjusted prices to facilitate transactions. Overall, the increase in processing fees was limited, but transaction performance was moderate. Today, the processing fee in the Foshan aluminum billet market was reported at 430/480 yuan/mt, up 60 yuan/mt; the processing fee in the Wuxi market was reported at 450/530 yuan/mt, up 0/30 yuan/mt; the processing fee in the Nanchang area was reported at 500/550 yuan/mt, up 50 yuan/mt. (Unit: yuan/mt)