SMM

December 26, 2024— This week, aluminum rod processing fees across various regions in China remained stable. Due to the initial signs of an off-season atmosphere downstream, the operating capacity on the supply side slightly declined under shipment pressure, but overall supply remained sufficient. On the demand side, shipment pressure on downstream wire and cable enterprises has eased. Enterprises have undertaken production cuts and maintenance to prepare for the coming year, leading to weak demand for aluminum rods. In summary, although there were minor changes on the supply side, supply resistance is gradually emerging. With weak downstream demand, the supply surplus situation is becoming increasingly evident, and processing fees are expected to fluctuate downward. As of this Thursday, the SMM A00 spot price was 19,820 yuan/mt, up 140 yuan/mt from last Thursday. The average ex-factory processing fee for 1A60 ordinary aluminum rods in Shandong was 400 yuan/mt; in Henan, the processing fee was 450 yuan/mt; in Inner Mongolia, the ex-factory processing fee was 300 yuan/mt. The average delivery-to-factory processing fee for ordinary rods in South China was 550 yuan/mt, while the average delivery-to-factory processing fee for 1A60 aluminum rods in Hebei and Jiangsu was 450 yuan/mt and 550 yuan/mt, respectively.