China’s aluminium ingot inventories jump W-o-W to 517,000 tonnes, yet stand 23% lower Y-o-Y

On Thursday, September 7, China’s aluminium ingot inventories across eight major consumption areas amounted to 517,000 tonnes, registering a week-on-week hike of 24,000 tonnes from 493,000 tonnes, found the Shanghai Metals Market survey. However, from Monday, November 4, the inventories dropped by 2,000 tonnes, and from a year ago, the stocks plunged by 155,000 tonnes, marking the lowest level for this period in the past five years.

The inventory fall in mid-week could be attributed to an enthusiastic consumption of primary aluminium among the downstream sector ahead of a traditional peak season. The predominant trend of high supply and low demand has somewhat weakened.

However, the week-on-week hike in inventories was primarily contributed by Wuxi, followed by Nanhai, Shanghai, and Chongqing. To know the status of China’s primary aluminium inventories as of September 7, refer to the chart below:

In Shanghai, aluminium ingot inventories on September 7 grew by 4,000 tonnes week-on-week and 1,000 tonnes from Monday to total 49,000 tonnes. In Wuxi, the inventories surged by 9,000 tonnes over a week but dropped by 3,000 tonnes from September 4 to settle at 94,000 tonnes.

In Nanhai, Hangzhou, and Linyi, primary aluminium inventories stood restrained at 156,000 tonnes, 62,000 tonnes, and 16,000 tonnes, respectively, compared to Monday, but increased week-on-week, except for Linyi, by 7,000 tonnes and 1,000 tonnes, from 149,000 tonnes and 61,000 tonnes. In Linyi, the inventories dropped by 3,000 tonnes over a week from 19,000 tonnes.

In Gongyi, primary aluminium inventories on September 7 dropped by 2,000 tonnes from Monday to 63,000 tonnes but remained muted from a week ago. In Tianjin and Chongqing, inventories increased by 2,000 tonnes and 4,000 tonnes, respectively, to close the week at 68,000 tonnes and 9,000 tonnes, found SMM.

Source: SMM