According to SMM statistics, as of March 26, inventory of aluminum billet in China’s major consumption regions totaled 341,500 mt, down 28,000 mt WoW from last Thursday, with the destocking trend steadily accelerating.

[SMM Analysis: February Operating Rate of Primary Aluminum Billets Hit a Nearly Four-Year Low, Expected to Recover to Peak-Season Levels Seen in the Same Period in Previous Years in March] According to SMM statistics, the operating rate of aluminum billets in February fell sharply by 9.2 percentage points MoM to 41.4%, down 7.7 percentage points YoY. After aluminum prices surged to a record high at the end of January, they saw a sharp correction ....

SMM March 2 Update: Aluminum Ingot: Today, the SMM A00 aluminum spot in Foshan was affected by the geopolitical situation in Iran, leading to increased market sentiment fluctuations. The discount slightly declined before recovering. Mainstream quotations against the front-month contract were -170 yuan/mt, with some supplies quoted at -180 yuan/mt, down 10-20 yuan/mt WoW. Transactions mainly concentrated at -20~-10 yuan/mt. A major player in Foshan was purchasing at -10 yuan/mt, with more low-priced supplies available and a few quotes rebounding to near parity. Downstream buyers primarily purchased for immediate needs at -10 yuan/mt, with overall procurement sentiment remaining sluggish. Aluminum Billet: Today, the average processing fee for SMM 6063 grade aluminum billets (Guangdong) Φ90/100 was 180 yuan/mt, while for Φ120 and above, it was 130 yuan/mt, up 20 yuan/mt from yesterday. The base price significantly rose, supported by cost factors and expectations of downstream restocking, making the processing fees generally firm, with minor adjustments to promote transactions. Strengthened prices during the day stimulated downstream willingness to buy at lower levels, with subsequent quotes fluctuating. Deals were made on a volume discount basis, enhancing market activity.

Before and after the Chinese New Year, the domestic spot aluminum market exhibited significant regional differentiation, with the spot price spread between South China (Foshan) and East China (Wuxi) drawing particular attention. Before the holiday, the Guangdong-Shanghai price spread reached a high of 150 yuan/mt on February 10, while by February 27 after the holiday, this spread had narrowed significantly to 10 yuan/mt.....

After the Chinese New Year holiday, the domestic aluminum market entered the traditional resumption cycle, but the problem of aluminum ingot inventory buildup became prominent. Warehouses in major consumption areas faced comprehensive capacity constraints, and congestion at railway stations was widespread. Overall inventory pressure is expected to persist until the end of March...

According to SMM survey, as of February 26, social inventory of aluminum billets in mainstream domestic consumption areas reached 398,000 mt, approaching the 400,000 mt mark.