Aluminum Billet Inventory Destocking Pace Slowed Down, Processing Fees Remained Stable as Market Purchased on Rigid Demand [SMM Aluminum Billet Weekly Review]

SMM April 9 update:

According to SMM statistics, as of April 7, aluminum billet inventory across major consumption regions in China totaled 311,500 mt, down 10,500 mt from the previous Thursday, with the destocking pace slowing down again WoW. Warehouse withdrawals side, aluminum billet warehouse withdrawals totaled 53,500 mt in the previous week, down 28,500 mt WoW, a significant decline. As the aluminum price center shifted upward again, coupled with uncertainty in macro sentiment, downstream players adopted a cautious wait-and-see approach and slowed their procurement pace, leading to a sharp decline in weekly aluminum billet warehouse withdrawals and a slowdown in inventory destocking. Currently, consumption pace maintained a seasonal recovery, and the progress of production resumptions on the aluminum billet supply side remained slow. Aluminum billet inventory is expected to maintain its destocking pace, with inventory likely to fall below 300,000 mt next week.

As aluminum prices moved sideways within the week, aluminum billet processing fees remained relatively stable. By region, Foshan quoted 160/210 yuan/mt, up 130 yuan/mt WoW; Wuxi quoted 200/350, up 70/100 yuan/mt WoW, with 90 aluminum billets relatively scarce and market quotes comparatively high; Nanchang quoted 180/230 yuan/mt, up 80 yuan/mt WoW. In the short term, the aluminum billet industry still faces pressure from inventory at high levels and ample supply. Under the sentiment of rigid demand purchase in the market, there is significant resistance to processing fee increases. Regional 120 aluminum billet processing fees are expected to remain in the range of 0-300 yuan/mt next week.