On Thursday, July 7, aluminium billet inventories in China declined by 4,700 tonnes W-o-W across four major consumption areas. The fall in aluminium prices and the increase in COVID-19 infections made downstream buyers more willing to spend on aluminium. However, downstream orders suggest that consumption is declining thus the drop in the inventory of aluminium billets could not be sustainable.
The figure below provides further information on the current state of aluminium billet inventories in China:
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The aluminium billet inventory in Nanchang has surged by 1,500 tonnes to settle at 4,300 tonnes from 2,800 tonnes a week ago. On the other hand, the aluminium billet inventory in Huzhou has witnessed the highest drop by 3,000 tonnes to score at 18,000 tonnes from 21,000 tonnes last week.
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As per the SMM data, aluminium billet inventory in Changzhou nosedived by 2,600 tonnes to halt at 8,200 tonnes from 10,800 tonnes on Thursday, July 30. In Foshan and Wuxi, aluminium billet inventories plunged by 100 tonnes and 500 tonnes to stand at 51,000 tonnes and 20,200 tonnes.
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