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28 JUNE 2018 AL CIRCLE

China’s aluminium inventory down on increasing consumption: A00 ingot price rises

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The incessant price fall of primary aluminium in China and increasing consumption among downstream consumers, as a result, led to the further decline of primary aluminium inventory over this week ended June 28, 2018, according to Shanghai Metals Market. Limited arrivals to the warehouses also contributed to this plunge.

As of Thursday, June 28, inventories of primary aluminium, including SHFE warrants, across eight major Chinese markets dropped from 1.87 million tonnes, as of Monday, June 25, to 1.84 million tonnes. Compared to the last Thursday, June 21 when the inventory was at 1.88 million tonnes, the inventory today shrank 40,000 tonnes, as SMM data showed.

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The inventory in Wuxi and Jiangsu dropped to 777,000 tonnes, while in Shanghai, the inventory dipped to 429,000 tonnes. Nanhai and Guangdong, and Gongyi and Henan also witnessed a plunge in inventories closing at 242,000 tonnes and 170,000 tonnes respectively. More details are as follows:

The A00 aluminium ingot price in China, however, showed a slight growth on June 28 closing at RMB 14030 per tonne, compared to RMB 14010 per tonne on June 27.  The average prices are expected to range between 14010 per tonne and RMB 14050 per tonne, with spot discounts to settle at RMB 90 to RMB 50 per tonne.

The initial two days this week, on the other hand, witnessed a fall in aluminium ingot price, as it dropped from RMB 14130 per tonne to RMB 14120 per tonne on June 25, followed by a further plunge to RMB 13980 per tonne on June 26, 2018.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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