SMM Weekly Updates On China Aluminum Billet Social Inventory As Of August 31

SHANGHAI, Sep 1 (SMM) – The inventory of aluminum billet continued to oscillate at a low level. As of August 31, 2023, SMM reported that the domestic aluminum billet inventory stood at 69,600 mt, a decrease of 800 mt from this Monday, and a decrease of 4,300 mt WOW. This level of inventory still represented a three-year low for the same period. The regions of Foshan, Wuxi, and Huzhou all contributed to varying degrees to the decrease in aluminum billet inventory, while the Nanchang area saw a slight increase in inventory due to the arrival of some new supplies.

With the onset of the traditional busy season, aluminum billet demand picked up slightly in late August, halting over a month of continuous decline in cargo pickup. Due to high aluminum prices and low processing fees, production willingness dropped significantly. If this situation continues without change, the chances of plants reducing or stopping production will rise significantly. From a supply and demand perspective, SMM anticipates a stable or slight decrease in future aluminum billet inventory.