SMM January 20 news:
In South China's aluminum ingot market, the average SMM A00 aluminum (Foshan) price on January 20 was 23,720 yuan/mt, down 180 yuan/mt on the day, at a discount of 120 yuan/mt against the front-month contract, narrowing by 10 yuan/mt compared to the previous day.Despite four consecutive days of declining aluminum prices, the spot market showed resilience, supported by no inventory buildup pressure, which helped suppliers hold prices firm. However, a marginal increase in willingness to sell led to improved availability, with offers maintained at 0 to +10 yuan/mt. Downstream buyers shifted from a wait-and-see stance to restocking on dips, while traders and large consumers actively purchased to fulfill orders, resulting in stable and good transaction volumes. Later, as futures prices continued to fall, suppliers lowered their offers, but only sporadic inquiries from individual buyers were seen, with actual restocking transactions being scarce.
In the South China aluminum billet market, the processing fees for SMM 6063 aluminum billets (Guangdong) of various specifications pulled back on January 20. The average processing fee for Φ90/100 was 90 yuan/mt, while that for Φ120 and above was 40 yuan/mt, down 30 yuan/mt from the previous day. In early trading, processing fees were mostly firm but with significant price spreads. As futures prices weakened during the session, downstream buyers insisted on pushing for lower prices, only restocking low-priced materials as needed. Subsequently, market offers accelerated their sharp decline, and overall transactions became difficult.
