May 16: Aluminum prices ended their consecutive gains, while aluminum billet processing fees continued to face downward pressure and adjustments [Daily Review of Spot Aluminum Billets]

SMM reported on May 16:

On May 16, SMM A00 aluminum was quoted at 20,270 yuan/mt, down 80 yuan/mt from the previous trading day, with a premium of +70 yuan/mt over the June contract, up 10 yuan/mt from the previous trading day. On May 16, SMM A00 aluminum (Foshan) was quoted at 20,140 yuan/mt, down 100 yuan/mt, with a discount of 55 yuan/mt against the current month (unit: yuan/mt).

According to SMM statistics, in terms of aluminum billet inventory in two domestic locations, the inventory of aluminum billet in Guangdong was 73,900 mt, and that in Wuxi was 14,300 mt, totaling 88,200 mt, a decrease of 600 mt MoM. After filling the gap at 20,300, the most-traded SHFE aluminum contract struggled to rise, showing range-bound adjustments. Today, processing fees across regions came under pressure and pulled back. Suppliers were willing to sell at high prices. Despite the approaching weekend, downstream buyers were cautious and their purchasing efforts were insufficient. Suppliers were willing to further lower processing fees to facilitate transactions. Both supply and demand in the market were weak, and trading sentiment was insufficient.Today, the processing fees in the Foshan aluminum billet market were quoted at 300/350 yuan/mt, down 10 yuan/mt; in the Wuxi market, they were quoted at 300/350 yuan/mt, down 20 yuan/mt; and in the Nanchang region, they were quoted at 300/350 yuan/mt, down 50 yuan/mt (unit: yuan/mt).

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