Trading in the South China Aluminum Market Hits a Freezing Point, with Intensified Spot-Futures Linkage Amplifying Sentiment Fluctuations [SMM South China Spot Aluminum Daily Report]

SMM Jan. 26:

Aluminum ingot:On Jan. 26, SMM A00 aluminum (Foshan) was quoted at 24,070 yuan/mt, down 80 yuan/mt, at a discount of 120 yuan against the front-month contract.In the morning session, suppliers still intended to hold prices firm, and spot transactions were briefly stabilized by rigid demand support. However, as bearish sentiment spread in the market, buyers quickly shifted to pushing for lower prices, while suppliers faced increasing pressure to sell, causing the discount to widen at one point. Although futures fluctuations led the quotation range to fluctuate considerably during the session, actual transactions were sparse, the trading center shifted downward throughout the day, and spot liquidity deteriorated significantly.

Aluminum billet:On Jan. 26, the average price of SMM 6063 aluminum billet (Guangdong) for specifications Φ90/100 was 30 yuan/mt, while for Φ120 and above it averaged -20 yuan/mt. During the day, a brief surge in futures prices temporarily stimulated restocking sentiment, but as the futures pulled back, demand quickly cooled, and processing fees retreated again. Overall transactions were sluggish, reflecting the dual challenges of weak end-user orders and inventory pressure.