Aluminium billet inventories extend downfall on improved downstream consumption

Shanghai Metals Market found aluminium billet inventories to further shrink today, on May 30, by some 1,200 tonnes week-on-week, as lower processing fees buoyed downstream consumption. Last week, on May 23, the billet inventories were at 79,700 tonnes after declining by some 13,900 tonnes from 96,500 tonnes on May 16, while today the stocks are at 78,500 tonnes. This indicates that billet inventories this week have recorded a slower plunge.

In Foshan, Guangdong, the aluminium billet inventory has dropped by some 1,900 tonnes from the last week to stand at 34,900 tonnes, while that in Wuxi, Jiangsu has declined by some 2,800 tonnes to stand at 13,200 tonnes. In Huzhou, Zhejiang, and in Nanchang, Jiangxi, the inventory, however, has inched up by some 1000 tonnes and 3,400 tonnes to clock at 10,000 tonnes and 13,400 tonnes, respectively.

Amidst the further decline in aluminium billet inventory, the price of aluminium alloy (A356) has recorded a decline by RMB 50 per tonne to stand at RMB 14,850 per tonne. This is the third consecutive downfall of aluminium alloy (A356) price after a notable growth on May 27, from RMB 14,850 per tonne to RMB 15,000 tonnes. The prices of aluminium alloys (ADC12) and aluminium alloy (A380) have, however, shown restraint today at RMB 14,400 per tonne and RMB 15,250 per tonne, respectively.