China’s primary aluminium inventories add 20,000 tonnes to reach 1.268 million tonnes on Feb 27

According to the Shanghai Metals Market survey, China’s social inventories of primary aluminium across eight major consumption areas, including SHFE warrants, totalled 1.268 million tonnes on Monday, February 27. Over the weekend, the inventories increased by 20,000 tonnes from 1.248 million tonnes, and over a week rose by 35,000 tonnes from 1.233 million tonnes.

Since January 19, before the Chinese New Year Holiday, the country’s aluminium ingot inventories have accumulated 524,000 tonnes. The inventories have maintained an upward trend but slowed down the gravity as there have been production cuts in Yunnan province due to restrictions imposed on electricity consumption. However, SMM predicts primary aluminium inventories to remain at a high level in the near term.

To know more about the current status of primary aluminium inventories across China, refer to the chart below:

According to SMM, Gongyi contributed 60 per cent to the inventory growth, accumulating 12,000 tonnes over the weekend to 260,000 tonnes as of February 27. In Chongqing and Hangzhou, primary aluminium inventories increased by 4,000 tonnes in three days, from 11,000 tonnes to 15,000 tonnes and 75,000 tonnes to 79,000 tonnes, respectively, on February 27. In Wuxi and Shanghai, the inventories inched up by 2,000 tonnes and 1,000 tonnes over the weekend to 441,000 tonnes and 52,000 tonnes, respectively.

Meanwhile, in Nanhai, Tianjin, and Linyi, primary aluminium inventories dipped 1,000 tonnes to stand at 316,000 tonnes, 76,000 tonnes, and 29,000 tonnes, as of February 27.