SHANGHAI, Sep 15 (SMM) –In early September, following the arrival of a large batch of aluminum billets, domestic aluminum billet inventory rose from below 70,000 mt to above 80,000 mt. According to SMM statistics, the national production of primary aluminum billets in August 2023 (31 days) was 1.356 million mt, a MOM increase of 5.1%, and increased by 11.9% YoY. The operation rate of domestic aluminum billet plants in August was 67.7%, an increase of 3.3% MoM.
However, since the start of September, according to SMM research, due to the high prices of aluminum and low processing fees in the previous period, combined with thin profits and insufficient orders, the willingness of aluminum billet plants to produce has significantly decreased. Some aluminum billet plants have opted to halt or reduce production again, mainly in regions like Guangxi and Inner Mongolia. Influenced by the supply-side production cuts, as of September 14, 2023, the domestic aluminum billet inventory recorded by SMM was 85,500 mt, a decrease of 900 mt from September 11 but up 3,700 mt WoW. The inventory is still at a low level for the same period over the past three years, with the decrease in inventory mainly coming from regions like Foshan and Nanchang, while Wuxi region saw an increase. In mid-September, the aluminum billet inventory temporarily stabilized at above 80,000 mt.