Aluminium billet inventory fell to 139,500 tonnes, warehouse withdrawals recovered and processing fees were broadly under pressure. According to SMM statistics, China’s aluminium billet inventory in major consumption areas recorded 139,500 tonnes on August 27, down 5,000 tonnes from last Monday and down 3,500 tonnes from last Thursday, ending the previous continuous inventory buildup trend and turning to a slight decline during the week.
Compared with the same period, inventory was 5,500 tonnes higher than in 2025, 29,400 tonnes higher than in 2024, and 69,900 tonnes higher than in 2023, with total inventory still at a high level for the same period in recent years. From the perspective of warehouse withdrawals, aluminium billet withdrawals recorded 36,500 tonnes from August 17 to August 24, up sharply by 6,200 tonnes W-o-W, with market transaction activity markedly recovering, mainly driven by a decline in the aluminium price centre last week, which spurred accelerated downstream procurement.
The slight decline in aluminium billet inventory during the week was driven by two main factors: on one hand, recent warehouse inflows of aluminium billet were low, with the arrival pace slowing across regions, and supply-side inflows fell short of expectations; on the other hand, the downward movement of the aluminium price centre last week stimulated concentrated downstream procurement, leading to a rebound in warehouse withdrawals and a slight destocking of inventory.
Specifically, inventory in the Foshan area fell to 62,500 tonnes due to a significant reduction in weekly arrivals, making it the main force behind the drop in total inventory; the Wuxi area saw a modest inventory buildup to 25,500 tonnes due to increased arrivals. However, the inventory buildup trend for aluminium billet has not reversed.