Primary aluminium inventories built up 181,000 mt on week

Since mid-August, domestic aluminum ingot spot premiums showed notable regional divergence: spot premiums in south China (Foshan) against the SHFE aluminum 2609 contract continued to widen, and by the week of August 27 they had expanded by 125 yuan/mt to a premium of 220 yuan/mt; east China (Wuxi) A00 spot premiums remained near a discount of 20 yuan/mt to parity against the 09 contract. The divergence...

As August drew to a close, looking back at China's aluminum billet market this month, "divergence" and "pressure" were the two most distinct key words. On one side was the resilient, eye-catching performance of aluminum prices; on the other was the continued slump in aluminum billet processing fees...

[SMM Analysis: On the Eve of "September Peak Season": Aluminum Billet Processing Fees Plunge Below the Cost Line; Foshan Market Consolidates Weakly at Lows] As August drew to a close, looking back at China's aluminum billet market this month, "divergence" and "pressure" were the two most distinct key words. On one side was the strong, impressive performance of aluminum prices; on the other side was the continued slide in aluminum billet processing fees—the φ120 aluminum billet processing fee in Foshan fell steadily from 180 yuan/mt at end-July, briefly touched a record low of 30 yuan/mt in intraday trading on August 12, and was quoted at only 110 yuan/mt as of August 28, already clearly below the industry average production cost line. Social inventory of aluminum billet accumulated for four consecutive weeks to a stage high of 144,500 mt; spot trades cooled several times; suppliers' willingness to cash out and downstream wait-and-see sentiment repeatedly pulled back and forth; and market participants' fatigue grew by the day...