Aluminium billet inventories decline slows down this week on higher stock arrivals and lower shipments

According to Shanghai Metals Market, the inventories of aluminium billets have slowed their decline this week ending Thursday, June 4, as arrivals increased versus lower shipments from warehouses.

SMM data shows the 6063 aluminium billet stocks have declined by 4,000 tonnes across five major consumption areas to stand at 73,100 tonnes, as of June 4, following the decline of 15,600 tonnes to 77,100 tonnes last week dated May 28.

The chart below indicates the current status of aluminium billet inventories across China in more details:

In Foshan, the inventories have recorded a decline of 2,900 tonnes to hover at 40,300 tonnes. In Nanchang, the billet stocks have plunged by 1,200 tonnes to 4,100 tonnes, while that in Huzhou and Changzhou have dropped by 1,000 tonnes and 330 tonnes to come in at 10,000 tonnes and 7,410 tonnes, respectively. In Wuxi, however, the billet inventories have climbed by 1.460 tonnes to stand at 11,330 tonnes.

But despite the increase in arrivals and lower shipments of aluminium billets, the price of aluminium alloy (A356) has increased by RMB 100 per tonne to stand at RMB 14,200 per tonne, as of June 4, found Shanghai Metals Market. The prices of aluminium alloy (A380) and aluminium alloys (ADC12) have, however, remained restrained at RMB 14,850 per tonne and RMB 13,950 per tonne, respectively.