Aluminium billets: The inventory rose slightly

According to SMM statistics, the social inventory of domestic aluminium billet across China’s five major markets stood at 83,800 mt on January 18, up by 800 mt WoW, up by 2,700 mt compared with January 15, and up by 48,100 mt YoY (as CNY holidays were relatively late this year). Heading into 2024, although domestic aluminium billets inventories fluctuated slightly, the inventory rose slightly on the whole, which was slightly slower than expected. SMM believes that the recent decline in inventory is mainly concentrated in Foshan, while Wuxi, Changzhou and other places saw inventory accumulation. Although the outflows of aluminium billets in Foshan dropped slightly last week, the arrivals decreased by nearly one-third WoW. Aluminium billets supply saw signs of weakening in January. Downstream extruders who will gradually close in late January were still willing to stock up for CNY holiday, driving the consumption of domestic aluminium billet inventories amid traditional off-season.