China’s primary aluminium inventories decline to a year-to-date low at 652,000 tonnes on September 26

According to the Shanghai Metals Market, social inventories of primary aluminium across China’s eight major consumption areas, including SHFE warrants, decreased by 14,000 tonnes over the weekend to a total 652,000 tonnes. On a week-on-week basis, the inventories plunged by 33,000 tonnes on Monday, September 26, to come at a year-to-date low.

As per the SMM data, Wuxi, Nanhai, and Gongyi contributed 90 per cent to the new low this year. The weekly shipments out of warehouses in Wuxi added 14,000 tonnes last week, while arrivals from Xinjiang declined, allowing local inventories to drop sharply.

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

In Wuxi, primary aluminium inventories declined by 8,000 tonnes over the weekend and 16,000 tonnes W-o-W to stand at 200,000 tonnes, followed by the fall of 4,000 tonnes from Thursday and 6,000 tonnes from the previous Monday in Gongyi to come in at 85,000 tonnes, learned SMM. In Nanhai and Shanghai, primary aluminium inventories dropped 4,000 tonnes and 4,000 tonnes W-o-W to hover around 16,800 tonnes and 4,000 tonnes, respectively.

Meanwhile, in Tianjin and Chongqing, primary aluminium inventories remained restrained both over the weekend and on week to continue at 74,000 tonnes and 4,000 tonnes, respectively.