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

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.