According to the Shanghai Metals Market, aluminium billet inventories in China increased by 14,400 tonnes on Thursday, August 12, across the five major consumption areas, as was estimated in the previous week. SMM data found the inventories stood at 117,600 tonnes this week compared to 103,200 tonnes on August 5.
The increase in inventories could be attributed to the shrink in outbound quantity of aluminium billet by 4,900 tonnes or 10.6 per cent to 41,200 tonnes, as downstream purchase was quiet amid the surging aluminium prices.
{alcircleadd}The chart below indicates the current status of aluminium billet inventories across China in more details:
In Foshan, aluminium billet inventories grew 7,500 tonnes this week to come in at 53,500 tonnes, followed by an increase of 3,080 tonnes in Wuxi to stand at 20,360 tonnes. In Nanchang and Changzhou, aluminium billet inventories gained 2,500 tonnes and 1,300 tonnes, respectively, to settle at 20,700 tonnes and 12,000 tonnes. However, in Huzhou, billet inventories remained restrained at 11,000 tonnes.
SMM has estimated that demand for aluminium billet from downstream companies is likely to slide down, while supply will be improved due to eased transportation disruption from the COVID pandemic. Therefore, re-stocking is highly possible next week.
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