China’s A00 aluminium ingot inventories drop 4,000 tonnes W-o-W to 576,000 tonnes

According to the Shanghai Metals Market, primary aluminium inventories in China witnessed a decrease of 4,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, on Thursday, November 10, the inventories totalled 576,000 tonnes, which in comparison with the month’s first Monday, November 7, escalated by 5,000 tonnes. As of now, the inventories in November dropped by 430,000 tonnes, as recorded in the same period last year and 36,000 tonnes on a month-on-month scale.

The entire aluminium inventory was following a downward trajectory due to curtailed logistical activities. But in the upcoming weeks, the inventory in Gongyi is going to grow with increased arrivals after the local transport was revived on November 10 and because the downstream demand is still slow, as recorded by the traders or regional downstream players. Anyhow, some of the aluminium smelters in Henna and Shandong will face cost and energy-related difficulties resulting in lower ingot output. Thus the month of November will see restricted growth in social aluminium inventories.

Last week, on November 3, primary aluminium inventories stood at 580,000 tonnes, which slumped across eight major consumption areas to come in at 576,000 tonnes on November 10, Thursday, with a week-on-week decline.

The chart below indicates the current status of primary aluminium inventories across China in more detail:

The aluminium ingot inventory shot up in Gongyi by 16,000 tonnes to stand at 75,000 tonnes, while the aluminium ingot inventory in Hangzhou measured a gain of 2,000 tonnes, closing at 71,000 tonnes. In Shanghai, Chongqing and Linyi, the aluminium inventories have increased by 1,000 tonnes week-on-week, settling at 42,000 tonnes, 5,000 tonnes and 18,000 tonnes. The aluminium inventory in Tianjin refrained from any change staying stagnant at 74,000 tonnes.

In the Chinese province Wuxi, the aluminium ingot inventory plummeted by 14,000 tonnes closing at 170,000 tonnes and in Nanhai, the social aluminium ingot inventory dipped by 11,000 tonnes stopping at 121,000 tonnes.