China’s aluminium ingot inventories drop 29,000 tonnes W-o-W to 518,000 tonnes

According to the Shanghai Metals Market, China's primary aluminium inventories decreased by 29,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, on Thursday, November 24, the inventories totalled 518,000 tonnes, which in comparison with the month's third Monday, November 21, plummeted by 12,000 tonnes. As of now, the inventories in November dropped by 500,000 tonnes, as recorded in the same period last year and 96,000 tonnes on a month-on-month scale.

The inventory in Wuxi marked a new low as there was a constant decline in cargo arrivals, and as sources confirm, this situation would be relevant in the next week as well. The logistical issues in Gongyi were dealt with, yet the number of cargoes in the logistical department was fewer than usual. Taking into account that the production of downstream organisations in Henan was not continuous, the inventories in Gongyi would require the utmost dedication next week. In Foshan, the inventories witnessed a crunch in numbers due to brisk trades. Due to the curtailed output by aluminium smelters and the heightening ratio of aluminium liquid produced, there is a vague chance of inventory rise in the upcoming days. SMM data displays that the total output of aluminium liquid in smelters has levitated by 69.8% in October. It can be predicted that the aluminium social inventory will remain at a low level for the immediate future.

Last week, on November 17, primary aluminium inventories stood at 547,000 tonnes, which slumped across eight major consumption areas to come in at 518,000 tonnes on November 24, 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 escalated in Gongyi by 2,000 tonnes, closing at 63,000 tonnes on November 24. The other provinces in China recorded either no alteration or declining aluminium inventories, like in Wuxi, the inventory went down by 23,000 tonnes to rest at 119,000 tonnes, which can be regarded as a new low. In Nanhai, the aluminium ingot inventory dropped 7,000 tonnes, arriving at 125,000 tonnes as of November 24. While in Shanghai, the aluminium ingot inventory closed at 40,000 tonnes, with a week-on-week fall of 1,000 tonnes.

The other Chinese provinces like Hangzhou, Tianjin, Chongqing and Linyi all recorded stagnant aluminium inventories, having no measured discrepancy with the previous week.