Poor Demand and Concentrated Cargoes Arrivals To Weigh On Aluminium Billet Conversion Margins

SHANGHAI, May 4 (SMM) – Large aluminium extruders generally took 2-4 days of break for the Labour Day holiday, while small and medium-sized ones were shut down for about three days. Most extruders barely stocked up as their raw material inventories could suffice production through the holiday. Pessimistic demand outlook and concentrated cargoes arrivals during the holiday may put downward pressure on conversion margins after the holiday.

Review: SMM A00 aluminium prices averaged 18,706 yuan/mt last week, down 248 yuan/mt on a weekly basis. Aluminium prices fell from 18,900 yuan/mt last Monday to 18,480 yuan/mt on Friday, allowing aluminium billet conversion margins to rebound.