Aluminum Billet Inventory In China Falls, But Ongoing Off-Season Casts Doubt On The Sustainability

Overall, the supply reduction in late October stimulated the market's receipt of goods, effectively driving down inventory. According to SMM, as of Nov 2, 2023, domestic aluminum billet inventory was 105,100 mt, down 2,600 mt from Oct 30and 8,500 mt WoW, up 44,600 mt YoY. It's noteworthy that this week's aluminum billet inventory has dropped from high levels seen in the past three years. It's expected that the aluminum billet inventory will be the first to show a destocking turning point. Overall changes in aluminum billet inventory across regions was minimal. Improving market sentiment led to some inventory decrease in major aluminum billet consumption areas of Foshan, Wuxi, and Nanchang, while other regions remained stable. However, with year-end off-season approaching, actual downstream demand for aluminum billets isn't optimistic, casting doubt on continued de-stocking.