Robust consumption, low aluminium prices support aluminium billet processing fees in Guangdong

Published: Jul 24, 2019 11:56

Save

Guangdong is home to manufacturers of aluminium profiles

SHANGHAI, Jul 24 (SMM) – Despite a low consumption season, processing fees for aluminium billet remained firm in Guangdong, showed an SMM survey, compared to declines of 30-100 yuan/mt in northern regions over the past month.

Guangdong is home to manufacturers of aluminium profiles, with most plants having annual capacity of above 100,000 mt. Great aluminium billet demand from Guangdong offered support to processing fees there.

The discount of aluminium prices in Guangdong against Shanghai prices also buoyed processing fees for aluminium billet. Spot aluminium prices in Guangdong stood about 30 yuan/mt lower than Shanghai prices as of July 22, compared to a premium of 115 yuan/mt on June 11.

Low aluminium prices prompted traders and producers in Guangdong to raise processing fees for aluminium billet to ensure profit margins and maintain cross-regional operations.

Market commentary Aluminium billet

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

14 mins ago

Huaibei Drafts Regulations for Aluminum Industry Development, Seeks Public Comments Till Oct 15, 2026

The Huaibei Municipal Bureau of Industry and Information Technology has taken the lead in drafting the Regulations on Promoting the Development of the Aluminum-Based Industry in Huaibei City (Draft for Comments), which are now open for public comment from September 15, 2026 to October 15, 2026. The regulations aim to promote the high-quality development of the aluminum-based industry in Huaibei City, cultivate and expand the aluminum-based composite materials industrial cluster, build a high-end, intelligent, green, and integrated industrial development system, clearly promote the development of the secondary aluminum industry, establish secondary aluminum recycling bases, and form a stable and sustainable secondary aluminum capacity scale.

14 mins ago

46 mins ago

Secondary Aluminum Market Rises; ADC12 Prices Up, Raw Material Costs Pressured Amid Stricter Scrutiny

[SMM Aluminum Alloy Alert] The secondary aluminum market consolidated on a strong note today. SMM ADC12 prices rose by 50 yuan/mt from the previous trading day. Raw material side, compliant aluminum scrap procurement became more difficult. Particularly, with reverse invoicing supervision further tightened in Henan, Jiangxi, and other regions recently, some areas saw business suspensions or intensified inspections, putting upward pressure on enterprises' actual raw material costs. Demand side, although end-user orders improved from the off-season, no significant volume increase has emerged yet. The traditional peak season effect is still in a gradual realization phase, and downstream buyers mainly made just-in-time procurement.

46 mins ago

4 hours ago

China's Secondary Aluminum Ingot Inventory Down 246 mt to 12,701 mt in Key Consumption Areas

[SMM Aluminum Flash] China's social inventory of secondary aluminum ingots in the three major consumption areas stood at 12,701 mt today, down 246 mt from the previous trading day.

4 hours ago