China’s aluminium inventory extended losses; A00 ingot prices plunge by RMB 130/t

According to the latest update by Shanghai Metals Market, primary aluminium inventories across eight consumption areas in China, including SHFE warrants, fell by some 17,000 tonnes from last Thursday September 20 to stand at 1.606 million tonnes  as of Tuesday September 25.China’s aluminium inventories extended their losses as downstream buyers stockpiled and limited cargoes arrived.

In Wuxi and Jiangsu, the inventory dropped from 699,000 tonnes, as of September 20, to 693,000 tonnes on September 25; in Shanghai, the inventory dropped from 371,000 tonnes, to 366,000 tonnes; in Gongyi and Henan, the inventory stood at 139,000 tonnes on September 25, from 147,000 tonnes on September 20.

More details are given in the table below:

The A00 aluminium ingot price decreased RMB 130 per tonne to RMB 14560 per tonne on Tuesday, September 25, 2018. The average prices today are expected to range between RMB 14540 per tonne and RMB 14580 per tonne, with spot discounts to settle at RMB 50 to RMB 10 per tonne.

All the major markets in China also registered a decline, including east, south, and north. In the east market, the price declined by RMB 105 per tonne to stand at RMB 14545 per tonne, while in the south and north, the prices fell by RMB 150 per tonne and RMB 160 per tonne to stand at RMB 14680 per tonne and RMB 14540 per tonne, respectively.