Aluminium Billet Stocks In China Exceed 80,000 Mt

SHANGHAI, Sep 8 (SMM) –Entering September, the increased supply of aluminium billet from August has led to a rise in arrivals, changing the low-level fluctuation of aluminium billet inventory to a sudden leap from under 70,000 mt to over 80,000 mt. Due to increased arrivals and high aluminium prices, the aluminium billet market still faces challenges. However, during the traditional peak season, there's a slight rebound in aluminium billet consumption, easing the oversupply situation a bit. As of September 7, SMM recorded a domestic aluminium billet inventory of 81,800 mt, an increase of 1,800 mt from September 4, and a 12,200-mt increase WOW, still at a low for the same period over the past three years. Inventory increases mainly originated from East China regions like Wuxi, Changzhou, and Huzhou. According to SMM research, amid the backdrop of high aluminium prices and low conversion margins, the thin profits and lack of orders have significantly dampened aluminium billet production enthusiasm, leading some to choose to halt or cut production. SMM will keenly observe any changes in aluminium billet supply and demand-side performance as the peak season progresses.