China’s aluminum billet inventory fell to 168,500 tonnes on October 15, down 19,000 tonnes from the previous Thursday and 12,500 tonnes from Monday. Stocks had reached 187,500 tonnes after the National Day holiday, making the latest decline a rapid reversal of the seasonal buildup, although inventories remained about 21,000 tonnes above the year-earlier level and 42,000 tonnes above 2024’s level for the same period—the highest in four years.
Shipments totaled 55,900 tonnes from September 28 through October 11, with withdrawals holding broadly steady across the two weeks. Foshan accounted for most of the destocking, with stocks falling 11,500 tonnes to 78,000 tonnes. Huzhou inventories declined 4,000 tonnes to 36,000 tonnes, while Changzhou fell 2,000 tonnes to 18,000 tonnes. Wuxi held 31,500 tonnes and Nanchang 5,000 tonnes, both little changed.
The drawdown followed the return of downstream processors after the holiday and stronger buying interest after aluminum prices declined. Slower arrivals after the concentrated holiday inflow also reduced immediate supply pressure. The SMM A00 aluminum spot price dropped about RMB 500 per tonne during the week, from RMB 23,760 to RMB 23,260.
Processing fees rose in each reported region as producers resisted lower prices while holding higher-cost raw-material inventories and buyers returned to the market. Foshan fees reached RMB 410 per tonne for 90-millimeter billet and RMB 360 for 120-millimeter billet, both up RMB 210 from the previous Thursday. Wuxi fees rose RMB 40 to RMB 540 and RMB 440, respectively, while Nanchang fees climbed RMB 220 to RMB 600 and RMB 550.
The next move in fees will depend on aluminum prices and whether post-holiday restocking continues. In a separate overseas alumina transaction reported on October 16, 30,000 tonnes were sold at $382 per tonne FOB India for November shipment, providing a contemporaneous reference point for raw-material trade outside China.