China’s aluminium ingot inventories suffer W-o-W fall of 17,000 tonnes to 734,000 tonnes on June 30

According to the Shanghai Metals Market, primary aluminium inventories in China have witnessed a steep downfall of 17,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, as of Thursday, June 30, the inventories have totalled 734,000 tonnes, which in comparison with the previous week’s Monday, June 20, decreased marginally by 2,000 tonnes.

Last week, on June 23, primary aluminium inventories fell by 34,000 tonnes from the week before across eight major consumption areas to come in at 751,000 tonnes. In Wuxi and Foshan, inventories continued to lose its grip due to a slow re-stocking system. Heavy rainfall in areas was another crucial reason for the falling inventories in Foshan, while stocks were being moved from Wuxi to Gongyi for higher premium prices. SMM would try to reinstate the downstream demand by offering discounts on aluminium prices in Gongyi to escalate inventory pressure.

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

The aluminium ingot inventories have plunged the highest in Wuxi by 19,000 tonnes over a week to 264,000 tonnes from 283,000 tonnes recorded last Thursday. In Nanhai, inventories have decreased by 8,000 tonnes to stand at 177,000 tonnes. In Shanghai and Chongqing the inventories have inched down by 1,000 tonnes to 36,000 tonnes and 2,000 tonnes, respectively, whereas Hangzhou has seen a rise of 1,000 tonnes week-on-week to come in at 61,000 tonnes.

In Gongyi, primary aluminium inventories have heightened by 11,000 tonnes to rest at 97,000 tonnes, while inventories in Tianjin and Linyi have refused any changes stopping at 80,000 tonnes and 17,000 tonnes, respectively, found SMM.