1.2: Macro Recovery Drives Aluminum Prices Up, Aluminum Billet Processing Fees Narrowly Adjusted [Daily Review of Spot Aluminum Billets]

Published: Jan 20, 2025 14:34

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According to SMM statistics, the aluminum billet inventory in major domestic consumption areas reached 177,800 mt, an increase of 26,700 mt WoW. This was due to downstream profile enterprises entering a concentrated holiday period last week, coupled with a significant increase in arrivals over the weekend, leading to an accelerated rise in domestic aluminum billet inventory. Although the macro sentiment slightly improved, the off-season destocking of aluminum ingots was interrupted, and SHFE aluminum prices dropped significantly. Today, processing fees of aluminum billets in three regions showed slight adjustments, but due to restrictions on the purchasing side, the market exhibited a situation of price without transactions. (Unit: yuan/mt)

SMM, January 20:

On January 20, SMM A00 aluminum closed at 20,260 yuan/mt, down 80 yuan/mt, with a discount of 60 yuan/mt to the February contract, up 20 yuan/mt. The price spread between Henan and Shanghai was -140 yuan/mt, down 20 yuan/mt. SMM central China closed at 20,120 yuan/mt, down 100 yuan/mt. (Unit: yuan/mt)

Aluminum Billet Spot Market: According to SMM statistics, aluminum billet inventory in major domestic consumption areas stood at 177,800 mt, an increase of 26,700 mt compared to last Thursday. This was due to downstream profile enterprises entering holiday mode last week and increased arrivals over the weekend, leading to an accelerated rise in domestic aluminum billet inventory. Although the macro atmosphere has slightly improved, the counter-seasonal destocking of aluminum ingots was interrupted, and SHFE aluminum prices dropped significantly. Today, processing fees for aluminum billets in three regions showed slight adjustments, but due to limited purchases, the market exhibited a situation of prices without transactions. In the South China market, suppliers quoted conservatively, with processing fees at 100–150 yuan/mt, up 10 yuan/mt from last Friday. In the Wuxi market, processing fees were quoted at 130–180 yuan/mt, with slight increases in actual fees but lacking transactions. In the Nanchang region, processing fees were quoted at 200–250 yuan/mt, maintaining a firm pricing stance. (Unit: yuan/mt)

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