On January 5, 2026, the first trading day after the New Year's holiday, the SMM A00 aluminum price surged by 850 yuan/mt in a single day, surpassing the largest single-day increase of any day in 2025. As a result, aluminum billet processing fees across regions rapidly pulled back, generally decreasing by 0–160 yuan/mt, but still remaining above the zero line. However, on the following day, January 6, 2026, the aluminum price soared another 600 yuan/mt, initiating an extreme market trend that lasted nearly two weeks—aluminum billet processing fees fell below the zero line and entered negative territory.

Reviewing the aluminum rod market in December, overall supply and demand improved, with processing fees bottoming out and returning to reasonable levels. According to SMM surveys, aluminum rod production totaled 323,800 mt in December, down 5.06% MoM.

In early 2026, U.S. trade policy has once again become a key variable impacting the global copper market. On Wednesday, former U.S. President Donald Trump publicly stated that he currently does not intend to impose tariffs on rare earths, lithium, and other critical minerals — including copper, which has been listed as a critical mineral since 2023. This statement quickly triggered a reassessment of U.S. copper import dynamics, leading to a narrowing of the LME-COMEX arbitrage spread.

[ SMM Titanium Weekly Review: Titanium Industry Chain Remained in the Doldrums This Week, Structural Divergence Seen Across Upstream and Downstream ] This week, the titanium industry chain overall presented a pattern of upstream stabilization and midstream-downstream structural divergence. Upstream titanium concentrate prices edged up slightly in major production areas, but weak downstream demand capped the overall increase; the midstream titanium dioxide market fluctuated at highs, supported by eased cost pressure and pre-holiday stockpiling expectations; titanium slag enterprises generally suffered losses, with operating rates low; sponge titanium prices weakened and adjusted downward, with inventory pressure still present; downstream titanium materials market, underpinned by costs, saw firm demand and slight price increases in high-end sectors (e.g., aviation-grade titanium ingots), while weak civilian demand constrained the rise of general materials, maintaining an overall weak supply-demand balance.

This week, ferrous metals fluctuated rangebound. During the week, ferrous futures largely followed the fluctuations in capital market sentiment, with no significant drivers from their own fundamentals. At the beginning of the week, the US dollar plunged sharply, which benefited commodities, leading to a rapid surge across the board. The ferrous metals market also showed a synchronized rising trend, but its sustainability was relatively weaker compared to other sectors, resulting in an overall fluctuating trend. In the latter half of the week, domestic expectations for further RRR cuts and interest rate cuts were released. However, previously strong performers such as ferrous metals and the A-share market experienced a pullback, and capital market sentiment saw a pullback. Post-holiday inventory of the five major steel products shifted from an increase to a decrease, leading to slightly better performance in finished products...

Today, Dalian iron ore futures opened higher but retreated in the afternoon, exhibiting a "rise then fall" pattern. The benchmark contract I2605 ultimately closed at 812 RMB/tonne, down 0.49% from the previous trading day. Spot prices fell by 0–5 RMB/tonne.