Aluminium billet inventories further expanded by 22,500t on lower consumptions by end-users

Shanghai Metals Market found a further rise in 6063 aluminium billet inventories across five major consumption areas on Thursday, February 20. According to the data, the stocks rose by 22,500 tonnes over the week to come in at 193,100. On last Thursday, February 13, the billet stocks increased by 23,800 tonnes from February 6 to stand at 170,600 tonnes.

The steady arrivals of stocks amidst low consumptions by aluminium end-users due to production curtail or suspension for the epidemic coronavirus outbreak boosted the billet stocks.

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

In Foshan and Wuxi, the inventories this week rose by 6,100 tonnes and 12,300 tonnes to stand at 72,500 tonnes and 41,300 tonnes, respectively, while that in Changzhou, Huzhou, and Nanchang inched up by 800 tonnes, 2,000 tonnes, and 1,200 tonnes to stand respectively at 20,000 tonnes, 36,000 tonnes, and 23,300 tonnes.

On this further week-on-week rise, the price of aluminium alloy (A356) remained restrained at RMB 14,300 per tonne yesterday, but recorded a fall today, on February 21, to RMB 14,250 per tonne, found Shanghai Metals Market. The average prices are expected to range between RMB 14,200 per tonne and RMB 14,300 per tonne.

The prices of aluminium alloys (ADC12) and aluminium alloy (A380), on the other hand, continued to show restraint at RMB 15,000 per tonne and RMB 15,900 per tonne, as of February 21, learned SMM.