China’s primary aluminium inventories build-up by 46,000 tonnes W-o-W as operating rates recover from pandemic

On May 5, 2022, social inventories of primary aluminium in China gained 46,000 tonnes week-on-week, marking a rise after three consecutive weeks of fall.  According to the Shanghai Metals Market data, the inventories totalled 1.03 million tonnes this week across eight major Chinese consumption areas, including SHFE warrants, albeit down by 82,000 tonnes a year ago.  

The week-on-week rise in primary aluminium inventories is attributable to higher arrivals of stocks due to the recovery in operating rates after the improvement of the pandemic situation, but some buyers still remain cautious about purchase in light of the pandemic.

The chart below indicates the current status of primary aluminium inventories across China in more details:

In Gongyi, primary aluminium inventories jumped by 37,000 tonnes on the week from 65,000 tonnes to 102,000 tonnes as of May 5, followed by the hike of 15,000 tonnes in Nanhai from 207,000 tonnes to 222,000 tonnes. Shanghai saw a marginal rise from 57,000 tonnes to 58,000 tonnes.

Meanwhile, in Wuxi and Hangzhou, primary aluminium inventories dropped by 5,000 tonnes and 2,000 tonnes, respectively, to stand at 485,000 tonnes and 63,000 tonnes, respectively. In Tianjin, Chongqing, and Linyi, primary aluminium inventories remained restrained at 80,000 tonnes, 6,000 tonnes, and 17,000 tonnes.