Aluminum Billet Conversion Margins Fall Further Amid Weakening Transactions

SHANGHAI, Apr 10 (SMM) – Softening demand weighed on aluminium billet conversion margins last week.

South China: The conversion margins of φ90 billets fell from 490 yuan/mt on Monday to 420 yuan/mt on Friday, and φ120 billets from 410 yuan/mt to 330 yuan/mt, with their weekly average down 80 yuan/mt to 460 yuan/mt and 370 yuan/mt respectively. Mainstream conversion margins were below 400 yuan/mt. Offers of more than 200 yuan/mt were heard on Friday. Abundant supply and softening downstream demand led to the decline in conversion margins.

East China: Local conversion margins continued to fall, but not as much as those in south China. The conversion margins of φ90 billets in Wuxi fell from 540 yuan/mt on Monday to 500 yuan/mt on Friday, and φ120 billets from 460 yuan/mt to 400 yuan/mt, with their weekly average down 20 yuan/mt to 530 yuan/mt and 430 yuan/mt respectively. High costs discouraged traders from lowering offers sharply.