Aluminium billets outflows from warehouses rebounded after CNY, with inventory showing signs of a downward trend

According to SMM statistics, the domestic social inventory of aluminium billets on February 29 was 270,500 mt, down 5,200 mt WoW, and 5,900 mt from Feb 26, but up 75,200 mt from pre-CNY holiday level. As inventories declined slightly in all the regions, domestic inventory showed signs of a downward trend. The outflows of aluminum billets from warehouses in the first week after CNY was 38,400 mt, up 24,300 mt from pre-CNY holiday level. With production continuing to resume, downstream companies favoured aluminium billets

In view of high stocks at billet makers, whether the destocking could sustain depends on how strong demand recovery will be after the Lantern Festival. We should be wary of potential surge in arrivals once transportation, previously delayed by bad weather, picks up.

Processing fees rose slightly in the second week after CNY holiday. In Guangdong, the prices for large and small billets were 240 and 310 yuan/mt, up 10 and 20 yuan/mt WoW. Prices in Wuxi were 270 and 360 yuan/mt, and prices in Nanchang were 250 and 330 yuan/mt. Comparing the two places in east China, prices in Nanchang performed poorly.