On May 12, China’s domestic aluminium billet inventory surged by 10,100 tonnes or 7.84 per cent W-o-W to halt at 138,700 tonnes, said SMM. Lower conversion margins may in the future, entice purchasers. After the epidemic was brought under control, the market mood improved. As a result, inventories of aluminium billets may fall next week.
The figure below provides further information on the current state of aluminium billet inventories in China:
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As of May 12, the inventory in Foshan hiked by 9,500 tonnes to peg at 80,000 tonnes. Demand was hindered by high conversion margins. Large volumes of aluminium billets were supplied to Foshan due to active production restart of aluminium smelters in Yunnan, driving up local inventories.
On the other hand, the inventory in Wuxi declined by 3,600 tonnes to total at 19,300 tonnes. Wuxi's pandemic condition is progressively improving, and local businesses are buying on demand.
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The delivery of aluminium billets boosted local inventories, creating weak consumption in the Nanchang region. In Nanchang, the inventory climbed up by 3,080 tonnes to settle at 9,800 tonnes. In Changzhou the inventory dropped by 3,100 tonnes to stop at 16,600 tonnes, followed by a plunge of 2,000 tonnes in Huzhou. The inventory for Huzhou halted at 13,000 tonnes.
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