Geopolitical Risks Disrupt Aluminum Ingot Discounts Downstream Restocking Interest Stimulates Active Billet Trading [SMM South China Spot Aluminum Daily Review]

SMM March 2 Update:

Aluminum Ingot: Today, the SMM A00 aluminum spot in Foshan was affected by the geopolitical situation in Iran, leading to increased market sentiment fluctuations. The discount slightly declined before recovering. Mainstream quotations against the front-month contract were -170 yuan/mt, with some supplies quoted at -180 yuan/mt, down 10-20 yuan/mt WoW. Transactions mainly concentrated at -20~-10 yuan/mt. A major player in Foshan was purchasing at -10 yuan/mt, with more low-priced supplies available and a few quotes rebounding to near parity. Downstream buyers primarily purchased for immediate needs at -10 yuan/mt, with overall procurement sentiment remaining sluggish.

Aluminum Billet: Today, the average processing fee for SMM 6063 grade aluminum billets (Guangdong) Φ90/100 was 180 yuan/mt, while for Φ120 and above, it was 130 yuan/mt, up 20 yuan/mt from yesterday. The base price significantly rose, supported by cost factors and expectations of downstream restocking, making the processing fees generally firm, with minor adjustments to promote transactions. Strengthened prices during the day stimulated downstream willingness to buy at lower levels, with subsequent quotes fluctuating. Deals were made on a volume discount basis, enhancing market activity.