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.

SMM February 24 news: Aluminum ingot: On February 24, SMM A00 aluminum (Foshan) was quoted at 23,470 yuan/mt, up 260 yuan/mt, at a discount of 55 yuan against the front-month contract. Prices rose on the first day after the holiday, with suppliers holding back sales to hold prices firm. However, as the market was still in the early stages of resuming operations, downstream users and traders showed weak restocking interest. Spot follow-up was insufficient, with few high-priced deals accepted, and overall transactions were sluggish. Aluminum billet: On February 24, the average processing fees for SMM 6063 aluminum billets (Guangdong) were 180 yuan/mt for Φ90/100 specifications and 130 yuan/mt for Φ120 and above. Processing fees remained high. Downstream operations had not fully resumed, and purchasing was mainly characterized by pushing for lower prices through inquiries. Manufacturers offered small concessions, but market activity was sluggish.

[SMM Analysis: Primary Aluminum Billets Operation in January Weaker Than Expectations, February Production May Hit a Nearly Four-Year Low] Domestic primary aluminum billets operation in January performed weaker than expectations. According to SMM data...

According to foreign media: Recently, Emirates Global Aluminium Spectro Alloys (EGA Spectro Alloys) signed a major contract with Presezzi Extrusion, under which the latter will supply core scrap recycling equipment for the former. This marks an important milestone in the company's ongoing efforts to advance aluminum processing technology. Since 2024, Emirates Global Aluminium (EGA) has held an 80% stake in Spectro Alloys. The company is currently further expanding its aluminum recycling capacity in Minnesota, US. In July 2025, the company completed a large-scale expansion, increasing the total annual production of secondary aluminum billets to 120 million pounds.

Key Points: Over the next five years, China's aluminum billet market is expected to exhibit a pattern of "dual growth in supply and demand but continued surplus, optimized capacity structure, and intensified demand differentiation," as the industry shifts from scale expansion to quality improvement...