China’s aluminium billet inventory augments as pandemic weakens consumption

China’s aluminium billet inventory has been on the decline side since Thursday, March 10. As per the latest data by SMM, on Thursday, April 7, aluminium billet inventory has augmented by 8,100 tonnes or 5.12 percent W-o-W to score at 165,600 tonnes. Because of the pandemic's impact on mainstream consumption, it's projected that aluminium billet inventories will continue to grow next week. The pandemic's impact on truck shipments has been worse this week, especially in east China, where both inflows and outflows of freight have been hampered.

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

In addition, due to sluggish end demand, merchants and downstream producers held off on purchase, resulting to larger inventories in Foshan, Huzhou, and Nanchang.

In Foshan the inventory has surged by 5,500 tonnes to close at 81,700 tonnes. For the same day in Huzhou and Nanchang the inventories has hiked by 4,000 tonnes and 3,880 tonnes to peg at 17,000 tonnes and 10,580 tonnes.

On the other hand inventories in Changzhou and Wuxi have declined by 4,700 tonnes and 610 tonnes to score at 17,500 tonnes and 38,790 tonnes. Buyers picked up cargoes from Changzhou, where the pandemic was less severe, due to transportation constraints caused by the epidemic in Wuxi, resulting in a dramatic drop in local inventories.