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06 SEPTEMBER 2018 AL CIRCLE

A00 aluminium ingot price climbs on lowered inventories; Aluminium billet stocks hike on tepid consumption

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the latest update by Shanghai Metals Market, primary aluminium inventories across major consumption areas in China shrank over the week as downstream consumers increased purchases to restock on lowered spot prices.

As of Thursday, September 6, stocks across eight consumption areas, including SHFE warrants, fell by some 33,000 tonnes from last Thursday to stand at 1.714 million tonnes.

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In Wuxi, Jiangsu, the inventory dropped by 9000 tonnes from Monday, September 3, to stand at 718,000 tonnes; in Shanghai, it dipped 5000 tonnes to clock at 381,000 tonnes. However, in Linyi, Shandong and Chongqing, the inventories showed no change and still hovering at 27,000 tonnes. For more details, refer to the chart below:

In this background, today, on September 6, the A00 aluminium ingot spot price climbed a bit by RMB 10 per tonne to stand at RMB 14590 per tonne, after dipping for last 5 days in a row. The average prices are expected to range between RMB 14570 per tonne and RMB 14610 per tonne, with spot discounts remaining same as yesterday at RMB 40 per tonne.

In the east and south, the ingot prices hiked RMB 20 per tonne to stand at RMB 14605 per tonne and RMB 14720 per tonne, respectively. But in the north, the price plunged significantly by RMB 95 per tonne from RMB 14700 per tonne, as of September 5, to RMB 14605 per tonne on September 6, 2018.

According to another update from SMM, inventories of aluminium billet across major consumption areas continued to grow over the week as demand in the construction extrusion sector took a hit despite the traditional high season.

Stocks of 6063 aluminium billet across five major consumption areas increase 12,100 tonnes from a week earlier to stand at 117,900 tonnes as of Thursday, September 6. Growth of some 15,300 tonnes in stocks in Foshan, Guangdong province accounted for the rise in inventories.

The status of the current billet inventories across China look like this:


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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