China’s aluminium billet inventories grow 1.2% as downstream sector resists stocks on weaker aluminium prices

Aluminium billet inventories in China have inched up by 1,100 tonnes or 1.2 per cent week-on-week across the five major consumption areas, following the three consecutive weeks of decline. The inventories are thus standing at 89,400 tonnes as of June 3, according to the Shanghai Metals Market. The slight rise in aluminium billet inventories could be attributed to the weaker performance of aluminium prices this week that led to the unwillingness of downstream sector for receiving goods. At the same time, the demand for purchasing raw materials declined due to the pandemic and power curtailment in South China.

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

In Foshan and Wuxi, aluminium billet inventories today have decreased by 1,600 tonnes and 1,728 tonnes, respectively, to come in at 43 tonnes and 15,009 tonnes on June 3. In Changzhou, billet stocks have declined have 1,900 tonnes to stand at 5,900 tonnes this week.

Meanwhile, in Nanchang and Huzhou, aluminium billet inventories have increased by 4,300 tonnes and 2,000 tonnes to peg at 15,500 tonnes and 10,000 tonnes, respectively, as of Thursday, June 3.