
Social inventories of primary aluminium inventories across eight consumption areas in China, including SHFE warrants, declined by some 45,000 tonnes from Thursday October 18 to stand at 1.538 million tonnes as of Thursday October 25, Shanghai Metals Market data showed. High costs and cash flow issues drove domestic producers to cut aluminium production and this accounted for the decrease in inventories of primary aluminium.
In some of the Chinese cities like Wuxi, Shanghai and Nanhai, Gongyi the inventories declined over the week. In Wuxi and Jiangsu, the inventory stood at 669,000 tonnes; in Shanghai and Nanhai, Guangdong, the inventory came in at 348,000 tonnes and 230,000 tonnes respectively. In Gongyi, Henan, the inventory declined to 91,000 tonnes.
{alcircleadd}The current inventory status in the major Chinese cities is as follow:

The A00 aluminium ingot price again witnessed a drop today, on October 25, after a slight increase in the previous day. Average A00 aluminium Ingot price dropped by RMB 50 per tonne to RMB 14140 per tonne on today. The average prices today are expected to range between RMB 14120 per tonne and RMB 14160 per tonne, with spot discounts to settle at RMB 60 to RMB 20 per tonne.

All the major markets in China also recorded a decline today. In the east, the ingot price is hovering at RMB 14135 per tonne. The price is expected to range between RMB 14130 per tonne and RMB 14140 per tonne. In the south and north, the prices are hovering at RMB 14210 per tonne and RMB 14135 per tonne respectively. In south, the price is expected to range between RMB 14190 per tonne and RMB 14230 per tonne; in north, the price is expected to range between RMB 14130 per tonne and RMB 14140 per tonne.
In another update from SMM, Inventories of aluminium billet also declined across all the major consumption areas in China on improved downstream purchases and limited arrivals. Stocks of 6063 aluminium billet stood at 143,500 tonne on Thursday October 25, down by some 6,500 tonnes over the week.
The aluminium billet inventory in Foshan, Guandong plunged by 5,100 tonnes to stand at 76,200 tonnes; while that in Wuxi, Jiangsu at 22,800 tonnes. For more details, refer to the chart below.

According to the update from SMM on October 25, aluminium alloys (ADC12) spot price remained unchanged at RMB 15500 per tonne since Friday, October 12. Aluminium alloy (A356) and aluminium alloy (A380) remained unchanged at RMB 14850 per tonne and RMB 16250 per tonne respectively.
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