July 11: High aluminum prices suppress downstream consumption; aluminum billet processing fees continue to run at a low level [Daily Review of Spot Aluminum Billets]

Published: Jul 11, 2025 14:20

Save

According to SMM statistics, in terms of domestic aluminum billet inventory in two regions, Guangdong's aluminum billet inventory stood at 72,600 mt, while Wuxi's aluminum billet inventory was 22,100 mt, totaling 94,700 mt, a decrease of 1,700 mt MoM. Supported by low inventory levels during the week, SHFE aluminum prices continued to fluctuate at highs. However, constrained by high aluminum prices, downstream consumption momentum was suppressed. Additionally, the pressure on the aluminum billet supply side intensified, with suppliers intending to cash in at high prices to maintain capital flow. Nevertheless, downstream buyers were not receptive to high aluminum prices. The impact of the off-season, coupled with high temperatures affecting production shifts, resulted in insufficient downstream rigid demand. Amid oversupply, aluminum billet processing fees mostly hovered around parity, with sluggish market transactions. As of July 11, 2025, the aluminum billet market in Foshan reported processing fees of 20/70 yuan/mt, down 10 yuan/mt; Wuxi reported processing fees of 60/110 yuan/mt, down 50 yuan/mt; and Nanchang reported processing fees of -30/20 yuan/mt, unchanged. (Unit: yuan/mt)

SMM July 11 Report:

On July 11, SMM A00 aluminum closed at 20,790 yuan/mt, down 30 yuan/mt from the previous trading day, with a discount of 70 yuan/mt against the July contract, and the discount against the previous trading day widened by 10 yuan/mt. The price spread between Henan and Shanghai was -130 yuan/mt, widening by 20 yuan/mt from the previous trading day. SMM central China closed at 20,660 yuan/mt, down 50 yuan/mt from the previous trading day. On July 11, SMM A00 aluminum (Foshan) closed at 20,780 yuan/mt, down 20 yuan/mt, with a premium of 80 yuan/mt against the next-month contract and a discount of 80 yuan/mt against the current-month contract (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 72,600 mt, and the inventory of aluminum billet in Wuxi was 22,100 mt, totaling 94,700 mt, a decrease of 1,700 mt MoM. Supported by low inventory during the week, SHFE aluminum continued to fluctuate at highs. However, due to the impact of high aluminum prices, downstream consumption was suppressed. Additionally, the pressure on the aluminum billet supply side intensified, and suppliers intended to cash in at high prices to maintain capital flow. But downstream buyers were not receptive to the high aluminum prices. The impact of the off-season, combined with high temperatures affecting production shifts, led to insufficient rigid demand downstream. Under the oversupply situation, aluminum billet processing fees mostly hovered around parity, and market transactions were sluggish. As of July 11, 2025, the aluminum billet market in Foshan reported processing fees of 20/70 yuan/mt, down 10 yuan/mt; the processing fees in Wuxi were quoted at 60/110 yuan/mt, down 50 yuan/mt; the processing fees in Nanchang were reported at -30/20 yuan/mt, unchanged (unit: yuan/mt).

》Subscribe to view historical SMM metal spot prices

》Click to view SMM aluminum industry chain database

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

21 hours ago

Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution

Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.

21 hours ago

Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation

All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.

21 hours ago

Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027

The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.

21 hours ago