According to the Shanghai Metals Market data, China’s social inventories of aluminium billets ended the year 2023 on Thursday, December 28, at a new low of 64,100 tonnes. On a week-on-week calculation, aluminium billet inventories witnessed a drop of 800 tonnes, and from Monday, December 25, saw a decline of 2,700 tonnes, marking a new low as aluminium billet supply decreased at the year-end.
To know the status of aluminium billet inventories on December 28, refer to the chart below:
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Last week, the downfall in China’s aluminium billet inventories was primarily driven by the fall in Wuxi. According to SMM data, the inventories in Wuxi decreased 3,200 tonnes to 8,500 tonnes on December 28 from 11,700 tonnes a week ago. Compared to 9,800 tonnes on December 25, the inventories fell by 1,300 tonnes. In Nanchang, aluminium billet inventories dropped by 1,000 tonnes week-on-week from 8,000 tonnes to 7,000 tonnes.
On the other hand, in Huzhou, Changzhou, and Foshan, aluminium billet inventories increased by 2,000 tonnes, 900 tonnes, and 500 tonnes week-on-week to settle at 14,000 tonnes, 4,000 tonnes, and 30,600 tonnes, respectively.
However, on an annual basis, China’s aluminium billet inventories on December 28 stood 2,200 tonnes higher. SMM believes that there is little room for aluminium billet stocks to decline further and stocks may fluctuate in the range of 60,000-70,000 tonnes in the short term.
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