China’s primary aluminium inventories extend decline over the weekend on improved demand

Shanghai Metals Market found a further decline in social inventories of primary aluminium ingots over the weekend ended Monday, April 13, bolstered by improved demand and reduced arrivals of stocks to warehouses. According to the SMM data, the inventories decreased 59,000 tonnes from last Thursday, April 9, across eight major consumption areas in China, including SHFE warrants, to stand at 1.548 million tonnes. From Tuesday, April 7, the primary aluminium stocks have reduced by 128,000 tonnes.

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

The primary aluminium inventories in Nanhai have decreased by 23,000 tonnes over the weekend to come in at 366,000 tonnes, while that in Wuxi and Gongyi by 18,000 tonnes and 17,000 tonnes to stand respectively at 639,000 tonnes and 148,000 tonnes. Shanghai and Tianjin have also seen a downfall in stocks, although marginally by 1,000 tonnes to 171,000 tonnes and 54,000 tonnes, but that in Linyi and Chongqing, on the other hand, have remained restrained at 11,000 tonnes and 14,000 tonnes, respectively.

On the extended decline in primary aluminium inventories, the price of A00 aluminium ingot has increased today by RMB 60 per tonne to RMB 11,790 per tonne. Improved demand among downstream consumers on the resumption of plants after the COVID19 outbreak has also been a reason for the three consecutive growths in aluminium ingot price.