SHANGHAI, Sep 26 (SMM) - Compared with August, the price of SMM A00 aluminium (Foshan) in September rose. The aluminium prices fluctuated slightly, and the overall aluminium billet conversion margin in Foshan was affected by the aluminium prices, but the impact was limited. According to SMM research, as the operating rates of local downstream extruders in September did not improve, extruders purchased less and remained wait-and-see. Among them, the small-sized extruders suffered huge losses, and many enterprises saw shutdown, layoffs, and transformation. Large-sized enterprises were relatively resistant to risks and barely remained the production. Although the orders of some enterprises recovered in September, the operating rates of local extruders in September did not increase. Therefore, the transactions of local maket were poor and the cargo holders were unlikely to hold the prices firm.
In addition, the inventory of aluminium billet in Foshan still declined. On the one hand, the aluminium prices in Foshan is basically the same as that in East China recently, and the price spread of conversion margin stood at about 100 yuan. Due to the delivery costs in Xinjiang and other places, goods were shipped to east China, including Wuxi, Huzhou, Nanchang and other places. On the other hand, due to the increase in invisible inventory, the arrivals decreased. Before the National Day, the local aluminium billet transactions may increase this week, but the market outlook still depends on the downstream recovery.
