China’s aluminium ingot inventory remains stoic at 500,000 tonnes with no change W-o-W on December 8

According to the Shanghai Metals Market, China's primary aluminium inventories have remained stagnant at 500,000 tonnes accumulating data from all the eight major consumption areas, including SHFE warrants, on Thursday, December 8. The inventories in comparison with the month's first Monday, December 5, plummeted by 7,000 tonnes. As of now, the inventories in December dropped by 452,000 tonnes, as recorded in the same period last year and 16,000 tonnes on a month-on-month scale.

To paint the whole picture, it must be mentioned that on average, the aluminium ingot social inventory has been down for the past two weeks, with spot cargoes in east China trading at a highly tagged premium. Although the downstream demand has withered away due to extreme aluminium prices, survey data says downstream operations have also gone down due to scarcity of orders. Anyhow, it can be predicted that the aluminium smelters would amplify their aluminium ingot production rate in December.

Last week, on December 1, primary aluminium inventories stood at 500,000 tonnes, which varied across eight major consumption areas to come in totally balanced at 500,000 tonnes again on December 8, Thursday, with no week-on-week change.

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

The social aluminium ingot inventory declined in Wuxi by 13,000 tonnes, closing at 98,000 tonnes, followed by a 3,000 tonnes plunge in Chongqing to stop at 2,000 tonnes. In Shanghai too, the aluminium ingot inventory fell by 2,000 tonnes, resting at 37,000 tonnes. Other than that, all the other provinces in China marked rising social inventories with it surging the highest in Gongyi by 9,000 tonnes, to reach 77,000 tonnes. Nanhai gained 6,000 tonnes, arriving at 122,000 tonnes, whereas Hangzhou saw a spike of 2,000 tonnes, closing at 71,000 tonnes. Tianjin jumped up by 1,000 tonnes, halting at 75,000 tonnes.

Only in Linyi, the inventory stood at 18,000 tonnes, with no change at all. There were both fluctuating and elevating inventory counts for this week, yet miraculously the total inventory remained the same.