20 NOVEMBER 2015AlCircle.com
China aluminium stocks’ collapse might not be indicative of a market turnaround
Edited by : AL CIRCLE
1 min read
China’s aluminum stocks stopped growing and fell 37,000 tonnes on a monthly basis as of November 12. However, this slump is unlikely to indicate at a turnaround in market fundamentals.
Market players should be aware that aluminum stocks are actually well above 340,000 tonnes seen a year ago, said industry experts. Shanghai Metal Market analysts attribute the fall mainly to production cuts, growing consumption nearby processors and falling arrivals due to snow in northwest China.
Falling supply from production cuts will be quickly filled up by growing new capacity. Year-end cash crunch will curtail consumption. As such, inventories will remain at current highs for the rest of the year, SMM predicts.
Market players should be aware that aluminum stocks are actually well above 340,000 tonnes seen a year ago, said industry experts. Shanghai Metal Market analysts attribute the fall mainly to production cuts, growing consumption nearby processors and falling arrivals due to snow in northwest China.
Falling supply from production cuts will be quickly filled up by growing new capacity. Year-end cash crunch will curtail consumption. As such, inventories will remain at current highs for the rest of the year, SMM predicts.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
GCC states make significant headway in aluminium production
Next articleVedanta may scale back expansion on soft aluminium prices
Grow with
AL Circle
