China’s aluminium billet inventories register second consecutive week of decline; Stocks hovering at 92,800 tonnes

China’s aluminium billet inventories, across five major consumption areas, expanded decline this week ending on Thursday, May 21, by 20,000 tonnes to stand at 92.800 tonnes, according to Shanghai Metals Market. Stable shipments from warehouses in contrast to limited arrivals could be attributed to the extended decline in China’s aluminium billet stocks.

Last week between May 6 and May 14, the inventories had shrunk by 19,300 tonnes to come in at 112,800 tonnes, following a rise in the previous week by 2,700 tonnes to 132,100 tonnes.

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

So, as the above chart suggests, Foshan has seen the highest downfall in aluminium billet inventories this week. The stocks there are standing at 53,100 tonnes after declining by 15,300 tonnes. The next is Changzhou, where the billet stocks have declined by 3,560 tonnes to hover at 8,670 tonnes, followed by the drop of 2,330 tonnes in Wuxi to 11,040 tonnes. In Huzhou and Nanchang, however, the billet inventories have grown by 1,000 tonnes and 2,150 tonnes to respectively stand at 12,000 tonnes and 7,950 tonnes.

However, despite the fall in aluminium billet inventories, the aluminium alloy prices in China have remained restrained on May 21. While the price of aluminium alloys (ADC12) has continued to hover at RMB 14,050 per tonne, the prices of aluminium alloy (A356) and aluminium alloy (A380) are still hovering at RMB 14,300 per tonne and RMB 14,950 per tonne, respectively.