09 MAY 2016Shanghai Metals Market
China aluminium destocking slows down significantly
Edited by : AL CIRCLE
1 min read
Aluminium stocks in China’s five major markets fell at a much slower pace last week, SMM says.
Falling aluminium prices dampened buying interest. Besides, operational aluminium capacity grew in late April due to new capacity release. These explained why inventory decline slowed down, Liu Xiaolei, SMM aluminium analyst said.
Release of new aluminium capacity will be quite limited during May and June, though, Liu added. There is still an over 1 million-tpy gap in annualized operational aluminium capacity. This means aluminium destocking will continue, and this will lend support to aluminium prices.
The table below shows details of aluminium stocks at China’s five major markets:
Unit: 1,000 tonne
LME aluminium to remain weak
LME aluminium will remain weak at USD 1,580-1,610/mt on Monday, due to a strong US dollar. SHFE 1607 aluminium will move at RMB 12,300-12,600/mt.
In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1605 aluminium contract.
Falling aluminium prices dampened buying interest. Besides, operational aluminium capacity grew in late April due to new capacity release. These explained why inventory decline slowed down, Liu Xiaolei, SMM aluminium analyst said.
Release of new aluminium capacity will be quite limited during May and June, though, Liu added. There is still an over 1 million-tpy gap in annualized operational aluminium capacity. This means aluminium destocking will continue, and this will lend support to aluminium prices.
The table below shows details of aluminium stocks at China’s five major markets:
Unit: 1,000 tonne
LME aluminium to remain weak
LME aluminium will remain weak at USD 1,580-1,610/mt on Monday, due to a strong US dollar. SHFE 1607 aluminium will move at RMB 12,300-12,600/mt.
In China’s spot aluminium market, spot discounts of RMB 0-20/mt and spot premiums of RMB 0-20/mt are expected over SHFE 1605 aluminium contract.
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