Aluminium billet inventories in China inch up by 5,100 tonnes on May 6 after eight consecutive weeks of decline

According to the Shanghai Metals Market, 6063 aluminium billet inventories in China have increased by 9 per cent or 5,100 tonnes after eight consecutive weeks of decline. On May 6, 2021, aluminium billet inventories are standing at 139,100 tonnes compared to 134,000 tonnes last week on April 29. The rise in inventories could be attributed to the less purchase enthusiasm in the market owing to the continued rise of A00 aluminium ingot price to a new high of RMB 19,150 per tonne as of May 6.

The fear of high prices aggravated in the downstream but shipments of aluminium billets out of warehouses increased 5,000 tonnes to 67,000 tonnes, as downstream aluminium processing enterprises restocked demand before the Labour Day Holiday.

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

The increase in China’s aluminium billet inventories this week is primarily driven by the rise in stocks at Huzhou and Nanchang. Inventories there have grown by 10,000 tonnes and 3,450 tonnes to come in at 18,000 tonnes and 13,750 tonnes, respectively.

In Foshan, however, aluminium billet inventories have decreased by 6,000 tonnes to stand at 63,000 tonnes, while also the inventories in Wuxi have lowered by 2,170 tonnes to 31,170 tonnes. Meanwhile, aluminium billet inventories in Changzhou have remained almost restrained at 13,200 tonnes compared to 13,400 tonnes last week.