SMM weekly updates on China aluminium billet stocks

SHANGHAI, Aug 11 (SMM) – Impacted by supply disruptions in Wuxi, the pressure on aluminium billet inventory has eased. As of August 10, 2023, SMM data reveals that domestic aluminium billet stock was at 74,900 mt, a decrease of 4,700 mt since the start of the week, and 4,000 mt from the same period the previous week—representing a three-year low compared to same period of previous years. The primary sources of this inventory reduction are East China regions like Wuxi, Nanchang, and Huzhou, while there has been a slight accumulation in Foshan. In Foshan, the inflow and inventory of aluminium billet have remained stable compared to the previous week, although consumption has decreased. Since August, processing fees for aluminium billet in Foshan have dropped, with inventory persisting above 40,000 mt. In East China, owing to a supply shortfall, Wuxi and Nanchang are experiencing tightness in aluminium billet supply. However, a resurgence in downstream demand has driven up consumption, thereby easing the inventory pressure in Wuxi and Nanchang. Inventory trends in Changzhou and Huzhou remained stable. According to SMM's forecast, aluminium billet inventory has been expected to stay steady with a minor increase since the start of August.