The inventory of aluminum billets continued to decline, and the divergence in processing fee ranges became more pronounced. [SMM Aluminum Billet Weekly Review]

Published: Apr 17, 2025 16:51

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Regarding aluminum billet inventory, according to SMM statistics, as of April 17, the inventory of aluminum billets in mainstream domestic consumption areas recorded 209,200 mt, a decrease of 17,200 mt from this Monday and a drop of 25,900 mt WoW, showing an accelerated destocking trend. From the outflows data, the outflows from warehouses of aluminum billets during the week of April 7-13 were 61,100 mt, an increase of 2,500 mt WoW, reflecting a marginal enhancement in the momentum of end-user restocking. On one hand, the significant decline in aluminum prices stimulated some end-users to restock at low prices; on the other hand, although it is the tail end of the "Golden March and Silver April" consumption peak season, downstream maintained a strategy of "driving down prices and slow procurement + picking up goods as needed," forcing upstream to accelerate inventory turnover. Considering that current aluminum prices are still fluctuating at lows, coupled with the opening of the pre-May Day stockpiling window, it is expected that aluminum billet inventory may break through the key level of 200,000 mt next week.

SMM April 17 News:

In terms of aluminum billet inventory, according to SMM statistics, as of April 17, the inventory of aluminum billet in mainstream domestic consumption areas recorded 209,200 mt, a decrease of 17,200 mt from this Monday and a drop of 25,900 mt WoW from last Thursday, showing an accelerated destocking trend. From the outflow data, the outflows from warehouses of aluminum billet during the week of April 7-13 were 61,100 mt, an increase of 2,500 mt WoW, reflecting a marginal strengthening of restocking momentum by end-users. On one hand, the sharp decline in aluminum prices stimulated some end-users to restock at low prices; on the other hand, although it is the end of the "Golden March and Silver April" consumption peak season, downstream maintained a strategy of "driving down prices and slow procurement + picking up goods as needed," forcing upstream to accelerate inventory turnover. Considering that the current aluminum price is still fluctuating at lows, coupled with the opening of the pre-May Day stockpiling window, it is expected that the aluminum billet inventory may break through the key level of 200,000 mt next week.

In terms of processing fees, macro sentiment stabilized this week, but limited by concerns about the economic outlook, SHFE aluminum showed low-level consolidation. At the same time, as aluminum prices remained stable WoW, suppliers actively lowered processing fees to boost shipments, with adjustments in processing fees in three regions. In terms of transactions, downstream maintained a rhythm of driving down prices and slow procurement for purchases, and market supply remained relatively loose, with transaction sentiment slightly improving WoW. As of April 17, 2025, the aluminum billet market in Foshan reported 320/370, up 20 from last Thursday; the processing fee in Wuxi reported 310/360, down 40 from last Thursday; the processing fee in Nanchang reported 310/360, down 40. (Unit: yuan/mt)

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