SMM, September 18 -
According to SMM statistics, aluminum billet inventory in mainstream domestic consumption areas stood at 135,000 mt on September 18, down 1,000 mt from Monday but up 2,500 mt WoW. In terms of withdrawals from warehouses, domestic aluminum billet withdrawals totaled 43,400 mt last week, down 3,500 mt WoW. From the perspective of withdrawals, the level has moved away from the off-season trough but has not yet reached the peak season level. Suppressed by high aluminum prices, aluminum billet inventory faced slight pressure during the week despite limited regional arrivals. As the National Day holiday approaches, downstream users are expected to stockpile raw materials. With the traditional peak season deepening and SHFE aluminum prices pulling back, downstream demand is expected to increase. However, aluminum billet producers have resumed production, and sellers and buyers are engaged in ongoing dynamic games. Inventory is expected to remain range-bound next week, with the September high likely between 140,000-150,000 mt.
On processing fees, aluminum prices surged and then pulled back this week, leading to a rapid recovery in the center of aluminum billet processing fees. However, due to limited arrivals of aluminum billets this week, suppliers showed reluctance to budge on prices, resulting in stronger processing fees. As of September 18, 2025, aluminum billet processing fees in the Foshan market were quoted at 240/290 yuan/mt, up 100 yuan/mt WoW; in Wuxi, processing fees were quoted at 300/400 yuan/mt, up 70/80 yuan/mt WoW; in Nanchang, processing fees were quoted at 230/280 yuan/mt, up 60/40 yuan/mt WoW. Although aluminum prices held up well, downstream procurement activity increased as the holiday approached. SMM expects processing fees to remain strong in mid-to-late September.
