Ingot inventories drop as production resumes at China Gongyi’s aluminium processing units

The month-long pollution control drive launched in China's Gongyi, Henan Province came to an end earlier this week. The environmental protection team that was conducting inspections left the region letting operations to resume at the local aluminium downstream facilities.

Shanghai Metals Market surveyed to find that majority aluminium downstream processing units have already restarted production in Gongyi this week. Shipments of alloyed aluminium ingots from local warehouses have also begun which sent Gongyi inventories down by 2000 tonnes on a weekly basis.

As per SMM survey, there are still few aluminium downstream processing units which are yet to go online. Their non-compliance with the pollution control standards and under-equipped infrastructure are the reasons why they are not being able to restart production.

SMM said it will follow up on the progress of these units' production resumption and inventory status.

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The aluminium ingot inventories in China kept rising last week, SMM reported. The total stocks in five key regions, including Shanghai, Hangzhou, Wuxi, Gongyi, and Nanhai reached 1.14 million tonnes till Wednesday, March 22.