China’s primary aluminium inventories swiftly increase to 1.14 million tonnes over this weekend

China’s social inventories of primary aluminium have built-up by 96,000 tonnes over the weekend ended February 6, 2023, across eight major Chinese consumption areas, including SHFE warrants, to stand at 1.14 million tonnes, found the Shanghai Metals Market data. On a week-on-week basis, the inventories have recorded a surge of 158,000 tonnes from 986,000 tonnes.

SMM data has also shown an increase of 278,000 tonnes compared to the same period last year. Currently, the social inventory is still in the seasonal accumulation cycle, which historically lasts for an average of 3-4 weeks post the Chinese New Year holiday.

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

According to SMM data, Wuxi has witnessed the highest growth in primary aluminium inventories this weekend among the other Chinese provinces, reaching 378,000 tonnes. From the last Thursday, the stocks gained 39,000 tonnes, while compared to a week ago, they accumulated 67,000 tonnes from 311,000 tonnes.

Nanhai is the second highest-growth province this weekend, where aluminium stocks have accumulated 30,000 tonnes to peg at 266,000 tonnes as of February 6. On a week-on-week basis, the inventories in Nanhai have increased by 52,000 tonnes from 214,000 tonnes. Gongyi has experienced an inventory hike of 26,000 tonnes over the weekend to settle at 257,000 tonnes versus 231,000 tonnes.

In Chongqing and Shanghai, on the other hand, primary aluminium inventories have inched up by 1,000 tonnes to come in at 12,000 tonnes and 44,000 tonnes, repectively. Meanwhile, the inventories in Tianjin and Linyi have recorded no change from 77,000 tonnes and 28,000 tonnes on February 2, while that in Hangzhou slipped 1,000 tonnes to peg at 81,000 tonnes, found SMM.