China’s aluminium ingot inventory skyrockets by 83,000 tonnes W-o-W to 576,000 tonnes on January 5

According to the Shanghai Metals Market, China's primary aluminium inventories massively increased by 83,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. On Thursday, January 5, the inventories totalled 576,000 tonnes, which in comparison with the month's first Tuesday, January 3, escalated by 15,000 tonnes. However, the inventories in China recorded 200,000 tonnes plunge from the same period last year.

The social aluminium inventories in China have begun storing the ingots on a seasonal basis. Once the seasonal cycle breaks, there will be a sudden fall. All industry-related transactions are at a momentary halt due to the upcoming Chinese New Year. The supply stock was high in January only because smelters had augmented their production rate in December. It can be foretold that the inventories will be on an upward trend for the next few weeks.

Last week, on December 29, primary aluminium inventories stood at 493,000 tonnes, which soared across eight major consumption areas to come in at 576,000 tonnes on January 5, Thursday, with a week-on-week augmentation.

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

The aluminium inventory had the highest spike in Wuxi with 35,000 tonnes added to it, making the total strength 148,000 tonnes. In Gongyi, there was an increase of 24,000 tonnes closing at 105,000 tonnes; while in Nanhai the aluminium inventories hiked by 11,000 tonnes to 111,000 tonnes. Linyi saw a rise of 8,000 tonnes, officially resting at 24,000 tonnes.

Both Shanghai and Hangzhou had a similar surge of 2,000 tonnes, closing at 37,000 tonnes and 74,000 tonnes, respectively. In Chongqing the aluminium inventory soared by 1,000 tonnes, accumulating 4,000 tonnes only. Somehow, there was no change in Tianjin’s aluminium inventory record and it stood at 73,000 tonnes.