Aluminum Billet Inventory Hits Nearly Three-Year High, Market Transactions Remain Weak [SMM Aluminum Billet Weekly Review]

Published: Feb 13, 2025 16:06

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SMM, February 13: According to SMM statistics, as of February 13, 2025, the domestic social inventory of aluminum billets was 300,400 mt, an increase of 25,500 mt (9.3%) compared to the first day after the holiday (February 5) and an increase of 76,900 mt compared to pre-holiday levels (January 27). Regarding outflows from warehouses, during the Chinese New Year period (January 27 to February 9), aluminum billet outflows from warehouses reached 17,100 mt, roughly higher than the same period last year. Currently, aluminum billet inventory has surpassed 300,000 mt. SMM expects that under the anticipation of the first traditional peak season for downstream demand in March and April, coupled with the gradual recovery of downstream operations to normal levels, the turning point for domestic aluminum billet inventory will appear around late February. Domestic aluminum billet inventory continues to show an increasing trend. Although the pace of downstream resumption has accelerated, downstream activities are mainly focused on stockpiling before the holiday, while purchases remain cautious, and overall market transactions remain sluggish.

SMM, February 13: According to SMM statistics, as of February 13, 2025, the social inventory of aluminum billets in China stood at 300,400 mt, an increase of 25,500 mt (9.3%) compared to the first day after the holiday (February 5) and an increase of 76,900 mt compared to pre-holiday levels (January 27).

Outflows from warehouses during the Chinese New Year period (January 27 to February 9) reached 17,100 mt, roughly higher than the same period last year. Currently, aluminum billet inventory has surpassed 300,000 mt. SMM expects that, under the anticipation of the first traditional peak season for downstream demand in March and April, coupled with the gradual recovery of downstream operations to normal levels, the turning point for domestic aluminum billet inventory is expected to occur around late February.

Domestic aluminum billet inventory continues to increase. Although the pace of downstream resumption has accelerated, downstream activities are mainly focused on stockpiling before the holiday, while purchases remain cautious, leading to weak overall market transactions.

From a regional perspective, Foshan's aluminum billet inventory continues to rise as large downstream manufacturers have not made concentrated purchases, and the market lacks strong support for quotes. Today, Foshan's aluminum billet market was quoted at 150-200 yuan/mt, down 10 yuan/mt WoW.

In east China, thanks to the accelerated resumption of local profile enterprises, aluminum billet transactions have slightly improved. However, the market remains under pressure with limited procurement, resulting in sluggish transactions. Processing fees in the Wuxi market were quoted at 180-230 yuan/mt, up 10 yuan/mt WoW.

In Nanchang, where most enterprises are in the construction materials sector, the market is primarily driven by rigid demand, with average transaction performance. Processing fees were quoted at 170-220 yuan/mt, down 30 yuan/mt WoW.

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