A00 aluminium ingot price drops in China due to steady consumption and limited supplies to inventories

According to Shanghai Metals Market, primary aluminium inventories across major consumption areas in China continued to decline over the weekend ended on August 20, 2018. Stocks, including SHFE warrants, shrank around 20,000 tonnes from last Thursday, August 16, to stand at 1.74 million tonnes. The fall could be attributed to the limited arrivals to all the warehouses and steady downstream purchases. Hence, it indicates that there has been a balance maintained between supply and consumption over the weekend in the market.

Compared to last Thursday, inventory in Wuxi and Jiangsu dropped 9000 tonnes to stand at 739,000 tonnes today, while Nanhai and Guangdong, and Gongyi and Henan recorded fall by 3000 tonnes and 8000 tonnes to stand at 237,000 tonnes and 148,000, respectively. For more details, refer to the chart below.

Although the primary aluminium supply recorded narrow over the weekend yet the A00 aluminium ingot price reported a fall today backed on steady consumption across the downstream market. From RMB 14360 per tonne on August 17, the price shrank RMB 40 per tonne to hover at RMB 14320 per tonne on August 20, 2018.

In the east, the primary aluminium price today registered a drop by RMB 45 per tonne at RMB 14320 per tonne; in the south and north, the prices plunged RMB 45 per tonne and RMB 10 per tonne to clock at RMB 14440 per tonne and RMB 14350 per tonne, respectively.