Aluminum prices remained above 20,000 yuan/mt. Downstream buyers presented little buying interest. Suppressed by inventory and capital pressure, some producers sold at close to costs in order to promote sales. The sellers and buyers significantly improved their adaptability to recent aluminum prices amid downstream peak season. Aluminum prices rebounded in the week, enhancing the confidence of downstream stocking. Although the operating rate of leading aluminum extrusion companies dropped slightly, the willingness of downstream companies to stock were not impacted due to rigid demand before Labour Day holiday. According to SMM statistics, the domestic social inventory of aluminium billets on Apr 25 was 233,400 mt, down 23,300 mt WoW, remaining at the highest compared to the same period of past four years. However, the amount of aluminum billets picked up from warehouses were 64,400 in the week, up 12,900 mt WoW. With slight decline in arrival of goods, cargo pick-up rose sharply for two consecutive weeks, dragging down the social inventory. Aluminum billets inventories in major domestic consumption areas showed varying degrees of destocking.

Affected by fluctuation of aluminum prices at a high level, the processing fees also have been volatile. On Apr 22, the processing fees of φ120 aluminum billets in Nanchang and Foshan dropped to 30 yuan/mt, and then the processing fees in the three places rebounded to around 200 yuan/mt. Supported by the rigid demand for stockpiling before Labour Day holidays, there is limited downward room for processing fees at the end of April.