China aluminium inventories fall; Q2 aluminium premium surges two-year high

<p>Aluminium ingot inventories in China major markets dropped for the first time after the 2017 Chinese New Year Holiday, reported Shanghai Metals Market. The total aluminium inventories in five key trading hubs fell 4,000 tonnes last week, SMM survey data showed.</p> <p>The shrink in inventory, though a small one, marked the first drop since the end of the Chinese New Year holiday this year which was celebrated from late January till February first week.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aluminiuminventory.jpg" alt="News" width="517" height="371" /></p> <p>As per Reuters' report, some Japanese buyers have agreed to buy the metal from aluminium producers at a premium of US$128 per tonne for three months contract with scheduled shipment in June.&nbsp;</p> <p>The 3-month aluminium premium agreed on saw a 35 per cent surge from the previous premiums of US$95 per tonne in the first quarter, marking a consecutive quarterly increase for the second time and the highest in two years.</p> <p>{googleAdsense}</p> <p>The aluminium pricing negotiation for the quarter began in February, with the initial offer being made at US$135 per tonne by the Japanese buyers to global producers such as Rio Tinto and South32 Ltd. Other pricing negotiations are expected to continue through this week, SMM reported.</p>