China’s Hongqiao sees gradual easing in aluminium rod inventories while ingot stocks stay elevated

China Hongqiao Group said social inventories of aluminium rods have been declining steadily since mid-March 2026, although aluminium ingot inventories remain relatively high due to delayed downstream demand recovery and cautious purchasing amid elevated aluminium prices.

Speaking at the company’s performance briefing on May 15, Hongqiao Holdings cited publicly available industry data showing continuous destocking in aluminium rods, while the pace of inventory reduction in aluminium ingots has been comparatively slower this year. 

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According to Hongqiao, several factors contributed to slower destocking in the aluminium market earlier this year. These included the late timing of the Spring Festival, delayed seasonal demand patterns and cautious downstream procurement because of elevated aluminium prices.

The company noted that higher aluminium prices affected purchasing behaviour among downstream buyers, leading to slower stocking activity and more inventory remaining concentrated within upstream producers and distribution channels.

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Hongqiao also pointed out that inventory trends have differed across product categories. The company said aluminium rods, aluminium ingots and processed aluminium products have not all moved through the destocking cycle at the same pace.

While signs of improvement have recently appeared in aluminium ingot inventories, the company said the sustainability of the trend will depend on factors such as downstream production activity, spot market transactions and the pace of incoming supply.

Hongqiao added that continued recovery in downstream demand could help support further inventory reduction in the coming months, though market conditions and price movements will remain important variables.

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