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02 MAY 2018 AL CIRCLE

China's aluminium inventory plunges over Labour Day holiday; A00 ingot price dips as well

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

After two days of holiday on the commemoration of Labour Day in China, Shanghai Metal Market unwrapped witnessing a drop in aluminium inventory on Wednesday, May 2, 2018, to close at 2.2 million tonnes.

To say the truth, aluminium inventory had been witnessing a fall over the past one week, hovering at 2.231 million tonnes on 23rd of April, down from 2.248 million tonnes, and 2.21 million tonnes on April 26 respectively. 

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Lowering of future price due to less investment on future contract by downstream consumers was the primary reason for the aluminium inventory plunge last time; while arriving of limited deliveries over the Labour Day holiday and rise in shipment ahead of the holiday bears the key responsibility for a further dip this time.

Transactions in some of the major Chinese markets have dropped as well. More details are as follows:

This shows that there’s a balance maintained between aluminium production and consumption.

Average A00 aluminium ingot price, on the other hand, however, could not present a very optimistic sentiment after two days of holiday in the market. According to SMM, the ingot price dropped from RMB 14430 to RMB 14330 per tonne on May, 2, 2018. The prices are expected to range between RMB 14310 per tonne and RMB 14350 per tonne, with spot discounts to settle at RMB 50 to RMB 10 per tonne.

While in East, the price dropped from RMB 14415 to RMB 14310; in South and North, the price dwindled from RMB 14475 to RMB 14340 per tonne and from RMB 14440 to RMB 14360 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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