
China’s social inventory of primary aluminium continued to decline over the weekend ended on July 2, 2018, but on a slower rate. According to Shanghai Metals Market, including SHFE warrants across eight major Chinese markets shrank only 9000 tonnes from last Thursday, June 28, to stand at 1.84 million tonnes. Compared to the last Monday, June 25, the inventory today shrank 15000 tonnes, as SMM data showed. A little loss of procurement interest among downstream consumers could be held responsible for this week-on-week slower decline.
In Wuxi and Jiangsu, the inventory today stood at 774,000 tonnes, while in Shanghai, the inventory hovered at 429,000 tonnes. In Nanhai and Guangdong and Gongyi and Henan, the inventory rallied at 241,000 tonne and 179,000 tonnes, respectively. More details are as follows:
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A00 aluminium ingot spot price plunged on the second consecutive days from RMB 13980 per tonne, as of June 29 to RMB 13900 per tonne on July 2, according to SMM. After a rise in ingot price on 27th and 28th of June from RMB 13980 per tonne to RMB 14010 per tonne and to RMB 14030 per tonne respectively, June 29 saw a dip back to RMB 13980 per tonne.

Today, the average prices are expected to range between RMB 13880 per tonne and RMB 13920 per tonne, with spot discount to settle at RMB 90 per tonne to RMB 50 per tonne.
The aluminium ingot price dropped across all the major Chinese markets on July 2. While in the east, the price dropped from RMB 14000 per tonne to RMB 13940 per tonne, in south and north, the prices declined from RMB 14070 per tonne to RMB 14035 per tonne and from RMB 13990 per tonne to RMB 13920 per tonne respectively.
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