June 18: SHFE aluminum surged unilaterally, destocking was significantly hindered, and processing fees collapsed [Daily Review of Spot Aluminum Billet]

Published: Jun 18, 2025 12:09

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According to SMM statistics, regarding the inventory of aluminum billets in two domestic locations, the inventory of aluminum billet in Guangdong was 56,800 mt, while the inventory in Wuxi was 19,800 mt, totaling 76,600 mt, a decrease of 1,400 mt MoM. SHFE aluminum prices surged consecutively, with A00 spot aluminum prices in east China gradually approaching the 21,000 yuan/mt threshold. In recent times, the aluminum billet market has seen sluggish transaction performance due to the suppression of high aluminum prices, and the de-stocking of aluminum billets has also shown a significant slowdown. Downstream sentiment is strongly influenced by fear of high prices, and market quotations are severely polarized. The overall center of processing fees for aluminum billets in three domestic locations has shifted significantly downward, with double-digit processing fee quotations appearing in Wuxi and Foshan, and even zero or negative processing fees in Nanchang, resulting in dismal transaction performance. As of June 18, 2025, the aluminum billet market in Foshan reported 50/100, down 100; the processing fees for aluminum billets in Wuxi were reported at 50/130, down 110; and the processing fees in Nanchang were reported at -50/0, down 80. (Unit: yuan/mt)

SMM News on June 18:

On June 18, SMM A00 aluminum was reported at 20,900 yuan/mt, up 280 yuan/mt from the previous trading day, with a premium of +190 yuan/mt over the July contract, narrowing by 20 yuan/mt from the previous trading day. On June 18, SMM A00 aluminum (Foshan) was reported at 20,760 yuan/mt, up 320 yuan/mt, with a premium of 55 yuan/mt over the current month, expanding by 25 yuan/mt (Unit: yuan/mt).

According to SMM statistics, regarding the inventory of aluminum billet in two domestic locations, the inventory of aluminum billet in Guangdong was 56,800 mt, and the inventory of aluminum billet in Wuxi was 19,800 mt, totaling 76,600 mt, a decrease of 1,400 mt MoM. SHFE aluminum prices surged continuously, with spot A00 aluminum in east China gradually approaching the 21,000 yuan/mt threshold. Recently, the aluminum billet market has seen sluggish transaction performance due to the suppression of high aluminum prices, and the aluminum billet inventory has also experienced a significant slowdown in destocking. Downstream sentiment is strongly characterized by fear of high prices, and market quotes are severely polarized. The overall center of aluminum billet processing fees in three domestic locations has shifted significantly downward, with processing fees in Wuxi and Foshan showing double-digit quotes, and even zero or negative processing fees appearing in the Nanchang region, resulting in dismal transaction performance. As of June 18, 2025, the aluminum billet market in the Foshan region was quoted at 50/100 yuan/mt, down 100 yuan/mt; the aluminum billet processing fees in the Wuxi region were quoted at 50/130 yuan/mt, down 110 yuan/mt; and the processing fees in the Nanchang region were quoted at -50/0 yuan/mt, down 80 yuan/mt (Unit: yuan/mt).

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