Aluminium billet inventory hits nearly three-year high, market transactions remain weak

According to SMM statistics, as of February 13, 2025, the social inventory of aluminium billets in China stood at 300,400 tonnes, an increase of 25,500 tonnes (9.3 per cent) compared to the first day after the holiday (February 5) and an increase of 76,900 tonnes compared to pre-holiday levels (January 27). Outflows from warehouses during the Chinese New Year period (January 27 to February 9) reached 17,100 tonnes, roughly higher than the same period last year. Currently, the aluminium billet inventory has surpassed 300,000 tonnes.

SMM expects that, under the anticipation of the first traditional peak season for downstream demand in March and April, coupled with the gradual recovery of downstream operations to normal levels, the turning point for domestic aluminium billet inventory is expected to occur around late February.

Domestic aluminium billet inventory continues to increase. Although the pace of downstream resumption has accelerated, downstream activities are mainly focused on stockpiling before the holiday, while purchases remain cautious, leading to weak overall market transactions.

From a regional perspective, Foshan's aluminium billet inventory continues to rise as large downstream manufacturers have not made concentrated purchases, and the market lacks strong support for quotes.

Today, Foshan's aluminium billet market was quoted at RMB 150-200 per tonne, down RMB 10 per tonne W-o-W. In East China, thanks to the accelerated resumption of local profile enterprises, aluminium billet transactions have slightly improved.

However, the market remains under pressure with limited procurement, resulting in sluggish transactions. Processing fees in the Wuxi market were quoted at RMB 180-230 per tonne, up by RMB 10 per tonne W-o-W. In Nanchang, where most enterprises are in the construction materials sector, the market is primarily driven by rigid demand, with average transaction performance. Processing fees were quoted at RMB 170-220 per tonne, down RMB 30 per tonne W-o-W. 

Source: SMM