SMM June 26 News: According to unofficial market feedback obtained by SMM, it was rumored that Sanmenxia Aluminum Industry Co., Ltd. successfully conducted a public auction sale of its 4N gallium yesterday. The final transaction price was around 1,700 yuan/kg. The actual quantity transacted is unknown, but the tender quantity was 1,000 kg. Market sources indicated that the base price for Sanmenxia Aluminum's 4N gallium tender was 1,650 yuan/kg. The final transaction price of around 1,700 yuan/kg also demonstrated that although market consumption capacity has been weak recently, rigid demand remains strong. As many market participants believe that with the approach of mid-year, many producers have increased their sales volumes as required by their sales policies, but there is still a reluctance to budge on prices. However, due to the cautious purchasing attitude of downstream buyers, this situation of weak supply and demand will continue until the end of June.
The situation for July is currently unknown and will depend on the new quarterly sales policies of producers. Nevertheless, many producers have also indicated that they will not accept excessive price negotiation space for the time being, but they will offer some price concessions to encourage downstream customers to purchase. After all, due to the overall bearish sentiment in the downstream sector, some sales policies are needed to stimulate their buying interest. However, many downstream buyers have also stated that due to their lack of optimism about the future market, they will continue to purchase as needed, without stockpiling or accumulating raw material inventories. It is expected that the tug-of-war between buyers and sellers will continue for some time.
