China’s aluminium inventory sees a slower decline this week: A00 ingot price is unchanged

China’s inventory of primary aluminium, including SHFE warrants, declined slower this week with a slight growth of warehouses supplies, according to Shanghai Metals Market. On Thursday, June 21, 2018, inventories of primary aluminium across eight major consumption areas in China shrank 40,000 tonnes to stand at 1.88 million tonnes, compared to a drop of 53,000 tonnes recorded on previous Thursday, June 14, to stand at 1.92 million tonnes.

However, downstream aluminium trading decreased due to lower aluminium prices.

In Wuxi and Jiangsu, the aluminium inventory hovered at 795,000 tonnes on 21^st of June, whereas on last Thursday, June 14, the inventory stood 801,000 tonnes. In Shanghai, the inventory rallied at 433, 000 tonnes, compared to 439,000 tonnes on last Thursday, Nanhai and Guangdong witnessed a drop in inventory from 266,000 tonnes on June 14 to 252,000 tonnes on June 21.

More details are as follows:

The table above shows that no matter slower but the primary aluminium inventory dropped across almost all the major Chinese markets.

On the other hand, the average A00 aluminium ingot spot price remained unchanged on 21^st of June, at RMB 14120 per tonne, after a decline on the previous day from RMB 14330 per tonne to RMB 14120 per tonne. Today, the prices are expected to range between RMB 14100 per tonne to RMB 14140 per tonne, with spot discount to settle at RMB 50 per tonne to RMB 10 per tonne.

Today, on June 21, the primary aluminium spot price either showed restraint or plunged marginally in the major Chinese markets, as shown in the table below.