South China Aluminum Market Under Pressure for Two Varieties, Trading in the Doldrums Amid Tug-of-War Between Sellers and Buyers [SMM South China Spot Aluminum Daily Review]

SMM Jan. 14:

For aluminum ingots in South China, SMM A00 aluminum (Foshan) was quoted at 24,690 yuan/mt on Jan. 14, soaring 380 yuan in a single day, at a discount of 60 yuan/mt against the front-month contract.With prices hitting new highs, suppliers showed stronger willingness to cash out, coupled with hedging positions offloading cargoes amid bearish expectations on the spot-futures price spread. The quotation range was -30 to -10 yuan, indicating relatively loose market supply. Downstream buyers were unable to chase higher prices, leading to weak procurement. Traders shifted from a wait-and-see stance to restocking at discounts, partially making up for the demand gap and supporting weak but stable transactions. Later, futures price fluctuations drove quotations to adjust between -60 and +80 yuan, with buyers only favoring low-priced sources. Spot transactions were centered around 24,690 yuan/mt.

For aluminum billets in South China, on Jan. 14, the average price of SMM 6063 aluminum billet (Guangdong) Φ90/100 was -120 yuan, and Φ120 and above specifications averaged -170 yuan. The sharp surge in the base price triggered strong fear of high prices among downstream buyers, with bargaining and price-pushing behaviors becoming prominent. Processing fees continued to hit bottom. Although intraday futures price increases provided some support, demand-side improvements remained weak. The market lacked effective transaction support, and overall trading fell into a difficult situation.