Aluminium Billet Conversion Margins Drop To Extremely Low Levels Amid Oversupply And Rising Aluminium Prices

SHANGHAI, Jun 13 (SMM) – According to SMM statistics, the domestic aluminium billet social inventory stood at 138,400 mt as of June 8, an increase of 3,200 mt from a week ago and still at a high level compared to the same period in the past three years.

Forecast: Billet plants may cut production in June to tackle extremely low conversion margins and supply overhang in the off-season. Given huge inventory pressure, conversion margins will remain under downward pressure this week.

Aluminium billet conversion margins by region (yuan/mt)