According to SMM statistics, the domestic social inventory of aluminum billets stood at 231,300 MT as of March 28, down 4,500 MT from March 25 and 6,800 MT or 2.9% week-on-week. The inventory has declined for four consecutive weeks, with a total decrease of 45,100 MT.The inventory trends diverged across major domestic consumption areas. Except for Foshan, Wuxi, and Huzhou where inventory continued to decline, inventories in Changzhou and Nanchang experienced significant accumulation after concentrated arrivals. The outflow of aluminum billets from warehouses in the fifth week after the Chinese New Year holiday was 52,800 MT, up 2,600 MT week-on-week.The performance of aluminum billet outflow from warehouses was moderate as high aluminum prices suppressed downstream demand. However, except for East China, the arrivals of aluminum billets in South China continued to decline during the week, contributing to further inventory reduction.Aluminum billet conversion margins rebounded due to large spot discounts of aluminum prices. In South China, φ120 and φ90 aluminum billet conversion margins were quoted at 280 yuan/MT and 330 yuan/MT, up 130 yuan/MT and 120 yuan/MT week-on-week. In Wuxi, the margins were 330 yuan/MT and 400 yuan/MT, up 130 yuan/MT and 150 yuan/MT. Conversion margins in Nanchang were 260 yuan/MT and 360 yuan/MT, up 80 yuan/MT and 130 yuan/MT.However, manufacturers in North China still held back from selling, and sell-off weakened in Southwest China, mainly Guangxi and Guizhou. The inventory growth also suppressed the rebound in processing fees of certain aluminum billet specifications.
