Aluminum Billet Processing Fees Plunge in Guangdong, SMM Says

Published: Aug 10, 2017 15:37

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Aluminum billet processing fees have been falling dramatically in Guangdong recently and are even offered flat with or lower than aluminum ingot prices, SMM learned.

SHANGHAI, Aug. 10 (SMM) –Aluminum billet processing fees have been falling dramatically in Guangdong recently and are even offered flat with or lower than aluminum ingot prices, SMM learned.

SMM Analysis: How Will Surging Aluminum Prices Affect Downstream Producers?

SMM attributes the situation to three factors.

Chalco Warns of Uncertainties in China Aluminum Market

First, SHFE aluminum surged of late. Current high aluminum prices are unacceptable to aluminum billet buyers. Second, aluminum billet stocks at public and private warehouses in Guangdong may have exceeded 200,000 tonnes, according to incomplete statistics. Third, orders fall sharply at local aluminum extrusion producers in the off-season, hurting aluminum billet demand.

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Aluminum billet processing fees

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