June 5: SHFE aluminum held up well, with inventory buildup yet to be seen and processing fee struggling to maintain [Daily Review of Spot Aluminum Billet]

Published: Jun 5, 2025 12:18

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In terms of aluminum billet inventory, according to SMM statistics, as of June 5, the aluminum billet inventory in major domestic consumption areas reached 130,000 mt, up 2,300 mt from Tuesday this week and 1,700 mt from Thursday last week. Inventory has slightly rebounded and is expected to become an inflection point. After falling below the 130,000 mt threshold in the past two weeks, aluminum billet inventory has shown a notable slowdown in de-stocking. This is due to intensified wait-and-see sentiment among downstream players and a significant weakening in purchasing efforts. However, the inventory level remains low compared to the same period in the past three years. Regarding processing fees, the SHFE aluminum market is currently trading bearish factors such as the off-season in consumption and tariff increases this week. However, due to the rising proportion of liquid aluminum, inventory has yet to enter the inventory buildup phase. The market is characterized by a mix of bullish and bearish sentiments, with aluminum prices fluctuating considerably. Aluminum billet processing fees have also shown considerable fluctuations during the week. As of June 5, 2025, the aluminum billet market in Foshan reported processing fees of 280/330 yuan/mt; in Wuxi, processing fees were reported at 250/330 yuan/mt; and in Nanchang, processing fees were reported at 230/280 yuan/mt. (Unit: yuan/mt)

SMM News on June 5:

On June 5, SMM A00 aluminum was reported at 20,250 yuan/mt, down 30 yuan/mt from the previous trading day, with a premium of +90 yuan/mt over the June contract, narrowing by 10 yuan/mt from the previous trading day. On the same day, SMM A00 aluminum (Foshan) was reported at 20,110 yuan/mt, down 20 yuan/mt, with a discount of 50 yuan/mt against the current month, unchanged (unit: yuan/mt).

In terms of aluminum billet inventory, according to SMM statistics, as of June 5, the aluminum billet inventory in major domestic consumption areas reached 130,000 mt, up 2,300 mt from Tuesday this week and up 1,700 mt from inventory on Thursday last week. Inventory has slightly rebounded and is expected to become an inflection point. After falling below the 130,000 mt threshold in the past two weeks, the aluminum billet inventory has shown a significant slowdown in de-stocking. This is due to the increased wait-and-see sentiment among downstream players and a noticeable weakening in purchasing strength. However, the inventory level remains low compared to the same period in the past three years and is still relatively low. Regarding processing fees, the SHFE aluminum market is currently trading bearish factors such as the off-season in consumption and increased tariffs this week. However, due to the rise in the proportion of liquid aluminum, inventory has failed to enter the inventory buildup stage. The market is characterized by a mix of bullish and bearish sentiments, with aluminum prices fluctuating considerably. Aluminum billet processing fees have shown considerable fluctuations during the week. As of June 5, 2025, the aluminum billet market in Foshan was reported at 280-330 yuan/mt; in Wuxi, aluminum billet processing fees were reported at 250-330 yuan/mt; in Nanchang, processing fees were reported at 230-280 yuan/mt. (Unit: yuan/mt)

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