Shanghai Nonferrous Network (SMM) newly added SMM A00 Aluminum (Central Plains) Price announcement

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Due to the large number of aluminum ingot traders and downstream processing plants in Henan market, and convenient railway transportation, the local spot trading of aluminum ingots has become more and more active in recent years, which has been widely concerned by the market. In order to meet users' demand for spot aluminum ingot trading and settlement in Henan, SMM plans to release "SMM A00 Aluminum (Central Plains)" price and "Zhongyuan Sheng discount" for market reference. The specific price methodology is as follows.

I. SMM A00 Aluminum (Central Plains) pricing principles

1.1 based on spot transaction price The SMM A00 Aluminum (Central Plains) price is based on the information of electrolytic aluminum smelters, traders and downstream enterprises collected before 10:15 on each trading day, and the price evaluation is mainly based on the actual transactions concluded in Gongyi, Zhengzhou and Luoyang, Henan Province on that day, and with reference to quotation enquiries, buying and selling intentions and cognitive price negotiations. The adoption of the standard comes from relatively fixed market participants, including smelters, traders, processing enterprises and downstream users. In judging the data collected, SMM will take into account the circumstances of each transaction, including the relationship between the two parties, the specifications and quality of the products, as well as the mode of shipment and terms of payment, in order to determine the price range of the spot price of Zhongyuan Aluminum. The prices arising from the selling, debt repayment, or any other non-repeatable transactions of affiliated enterprise transactions under financial or legal pressure will be excluded.

1.2 Standard acquisition unit SMM price collectors collect trading data from a list of active traders in a relatively stable spot market. SMM will continuously evaluate the operation of each company and the accuracy of the information provided in the past to determine whether a company is excluded or added to the pricing unit. The criteria for selecting standard units by SMM are as follows: 1) smelting enterprises: A00 aluminum annual production capacity of more than 100000 tons, a standardized sales model, smooth sales channels, relatively stable sales quantity, a certain degree of influence and popularity, legal and honest management, good market reputation. 2) Trading enterprises: engaged in spot trade of A00 aluminum ingots for more than two years, average daily purchase and sales volume of more than 500 tons, monthly trade volume of more than 10,000 tons, standardized purchase and sales model, smooth purchase and sales channels, relatively stable purchase and sales quantity, have a certain degree of influence and popularity, legal and honest management, good market reputation. 3) downstream enterprises: engaged in aluminum processing industry for more than two years, the average daily aluminum consumption is more than 500tons, aluminum processing capacity is more than 100000 tons / year. There is a standardized purchase and sales model, smooth purchase and sales channels, relatively stable purchase and sales quantity, a certain degree of influence and popularity, legal and honest management, good market reputation. Each bidding unit can objectively and truthfully feedback the actual situation of the purchase and sales of A00 aluminum ingots, and can maintain good communication with SMM price analysts in this regard. Bid adoption units (including but not limited to): Enterprise type enterprise name Smelter Chinalco International Trading Co., Ltd. Smelter Henan Shenhuo International Trade Co., Ltd. Smelting enterprise Oriental Hope Group Trading enterprise Xiamen Xiangyu Group Co., Ltd. Trading enterprise Gongyi Kangyi material Trading Co., Ltd. Trading enterprise Chengdu Longquan Dongsheng Metal Materials Co., Ltd. Trading enterprise Zhengzhou Huiyuan Metal material Co., Ltd. Trading enterprise Henan Zhongheng Nonferrous Metals Co., Ltd. Processing enterprise Henan Mingtai Aluminum Co., Ltd. Processing enterprise Henan Yongtong (Hengtong) Aluminum Co., Ltd. Processing enterprise Henan Xintai Aluminum Co., Ltd. 1.3 Standard acquisition process The SMM standard takers collect the transaction prices of aluminum ingots in the Central Plains from 9:00 to 10:15 every day. These price data will be recorded electronically and in writing, and all paper records will be retained for a long time. The original data of all transactions will be standardized and used as a basis for generating current-day prices to be released to the public. 1.4 Standardization of data Although SMM has a standardized definition of price, there is a variety of transactions in the market. The price of each transaction is affected by many factors, including the quantity of the order, the quality of the goods, the time of delivery, the terms of payment and so on. SMM will take into account the quotation, bid and transaction information in the market, so that the quotation of SMM is in line with the standards of SMM.

II. Product specifications A00 aluminum ingots: meet the requirements of "Al99.70" brand of "aluminum ingots for remelting" GB/T 1196-2017.

III. Major aluminum ingot circulation brands Sweet aluminum, Shenhuo, its Asia, Jiarun, Baihe, Xinye, Hope, Linaluminum, Qingtong Gorge, Tianlong and so on. Note: rank in no particular order.

IV. Place of delivery Gong Yiguo 431, Gong Yiguo 339, Gongyi Central Reserve, Gongyi Elephant Road, Gongyi Southern Reserve, Central Zhengzhou Lugang, and Luoyang State Reserve 433; regional transactions include, but are not limited to, the above-mentioned warehouses; including direct delivery to the factory warehouse.

Mode of delivery Delivered on the same day, the buyer's Henan warehouse will bring it up.

VI. Product volume per transaction SMM defines the typical trading volume that reflects market circulation as 1-1000 tons per transaction.

VII. Valuation unit RMB yuan / ton

VIII. Price terms The price of each transaction is a price including VAT (13%).

IX. Method of payment Bank remittance will arrive on the same day.

The price expression of SMMA00 aluminum (Central Plains) Daily quotation includes the highest price, the lowest price and the average price of SMM A00 aluminum (Central Plains).

Release time and historical data 10:15 on every working day (except statutory holidays and weekends). Members of Shanghai Nonferrous net can inquire the historical price on the website of Shanghai Nonferrous net and visit www.smm.cn to get it.

12. Survey feedback In the afternoon, the SMM sampling staff conducted a sample survey on the standard-adopting enterprises and other customers to understand the completed mainstream trading range of the market and the feedback on the price and discount of SMM A00 aluminum (Central Plains).

Shanghai Nonferrous Network Information Technology Co., Ltd.