SMM, Nov. 3:
Dear users,
Hello!
In order to facilitate aluminum processing upstream and downstream enterprises to better control market changes and timely reflect the price of the spot market, reduce market transaction risks and transaction costs, and constantly improve and deepen the research of the aluminum industry chain, after a period of precipitation and market research, SMM plans to release new aluminum alloy cold rolling coils from November 8th to raise the tax price for market reference.
I. General principles of SMM Price Methodology
SMM (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive transaction, but maintains close communication with the buyer or seller of the transaction as a market observer or organizer, and provides relevant services for the market. By communicating with industry insiders, SMM continuously develops, reviews and revises its methodology, adopts the most common product specifications, terms and conditions of trade in the industry, and attaches equal importance to normal transactions that meet specification standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.
SMM publishes daily spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets), often referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all will be published on SMM's official website www.smm.cn for inquiry). The methodology stipulates the methods and procedures for the generation and release of SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology.
In order to meet the actual situation of the spot market, SMM will make necessary amendments to the SMM price methodology and announce it on the official SMM website before its formal implementation. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please check the contact information on SMM's official website www.smm.cn).
This document sets out the standard for setting the price of SMM aluminum alloy cold-rolled coils. The purpose of this standard is to establish a transparent and verifiable SMM pricing mechanism for SMM.
Second, the price formation of SMM aluminum alloy cold rolling coil.
2.1 definition
The price of SMM aluminum alloy cold rolled coil is formed and issued by SMM according to this methodology and can be used by both parties as a reference for spot trade settlement of aluminum alloy cold rolled coil. The price is mainly based on the daily spot transaction price situation across the country, including taxes, capital occupation costs and other related trade expenses.
2.2 the price points of the new cold rolled aluminum alloy coil for SMM are as follows:
(1) 1060 curtain wall materials (Shandong)
Specification: alloy grade 1060, thickness 1.5-3mm, width 1000-1800mm
(2) 8079 domestic foil blanks (Shandong)
Specification: alloy grade 8079, thickness 0.2-0.3mm, width 1000-1500mm
(3) 3104 can material (Shandong)
Specification: alloy grade 3104, thickness 0.24-0.28mm, width 1600-1900mm
(4) 1060 curtain wall materials (Henan)
Specification: alloy grade 1060, thickness 1.5-3mm, width 1000-1800mm
(5) 8079 foil blanks for household use (Henan)
Specification: alloy grade 8079, thickness 0.2-0.3mm, width 1000-1500mm
2.3 method of quotation generation
SMM collects the data information used to evaluate the spot price of aluminum alloy cold rolling coil by collecting the standard (that is, collecting the original data information in accordance with the SMM standard), including the quotation provided by the bid unit (that is, the data provider), the actual transaction price provided by the bid unit, and so on.
2.4 the method of adopting the standard
SMM price analysts regularly collect data and information on the spot price of aluminum alloy cold-rolled coils from the bidding units by telephone, QQ, Wechat, fax and e-mail (between 09:30 and 12:00 on each trading day). The price data information may include the price that has been closed on that day, the most likely price to be closed by the enterprise, the offer, and so on. All instant messaging content, email communication content and any face-to-face communication records will be archived; phone communication details will be summarized and entered into the database. The price data information must be a typical, repeatable transaction between non-affiliated market participants (financially and legally independent).
SMM price analysts are required to comply with the Compliance system when reporting to their supervisors any forced or threatened communication from market participants, or any induced offer that attempts to influence the outcome of the assessment. After the price is released, SMM will not revise or adjust it on the same day.
2.5 pricing units and forms of expression
The unit of valuation is RMB / ton, presented in the form of range, including tax price (including 13% VAT), and the absolute price of SMMA00 aluminum plus processing fee.
2.6 Standardization of data
Although SMM has a standardized definition of our price, there is a variety of transactions in the market. The price of each transaction is affected by many factors, including the size of the order, the brand of the goods, the time of delivery, the terms of payment and so on. SMM will take into account the quotations, bids and transaction information in the market and match them with our standards.
2.7 change in methodology
All markets are changing, and SMM is responsible for ensuring that the methodology for market reporting changes with market Synchronize. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all substantive and non-urgent potential changes. Major changes are then announced and at least 28 days' notice is given, inviting comments from the industry, unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.) shorten the notice period. SMM promises to scrutinize all comments about proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process. SMM promises to hold formal consultations on methodology every three years. The date of the last consultation and the deadline of the SMM's commitment to hold the next consultation are at the top of the methodology document.
Welcome more related enterprises in the industry chain to participate in and support SMM to better serve the enterprises related to the aluminum industry chain.
If in doubt, you can call for advice.
Qu Jianhui, aluminum research team of Shanghai Nonferrous net, contact: 021-51666829, 17865316370
