July 2: SHFE aluminum remains strong, while the aluminum billet market is in disarray with poor transactions [Daily Review of Spot Aluminum Billet]

SMM reported on July 2:

On July 2, SMM A00 aluminum was quoted at 20,810 yuan/mt, up 30 yuan/mt from the previous trading day, with a premium of +10 over the July contract, narrowing by 30 yuan/mt from the previous trading day. On July 2, SMM A00 aluminum (Foshan) was quoted at 20,730 yuan/mt, up 40 yuan/mt, with a discount of 70 yuan/mt against the current month, expanding by 25 yuan/mt (unit: yuan/mt).

According to SMM statistics, regarding the inventory of aluminum billets in two domestic locations, the inventory of aluminum billets in Guangdong was 69,300 mt, and the inventory of aluminum billets in Wuxi was 21,500 mt, totaling 90,800 mt, an increase of 3,600 mt MoM. Entering July, SHFE aluminum remained strong, with A00 aluminum spot prices in east China showing signs of breaking through the 20,000 yuan/mt threshold again. However, the aluminum billet market was in a dire state, with a lack of downstream orders during the off-season and exceptionally weak demand. Even when futures prices rose during the trading session, there were no signs of stimulation. Under the heavy pressure of inventory and capital, suppliers were forced to lower their quotes. Negative processing fees continued to be reported in the Foshan and Nanchang regions, with overall transactions being dismal. As of July 2, 2025, the aluminum billet market in the Foshan region was quoted at -10/40 yuan/mt, down 30 yuan/mt; the aluminum billet processing fees in the Wuxi region were quoted at 110/180 yuan/mt, unchanged; the processing fees in the Nanchang region were quoted at -50/0 yuan/mt, down 30 yuan/mt (unit: yuan/mt).

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