China’s primary aluminium inventory declines on pre-holiday stockpiling

Primary aluminium inventories in China fell for a fifth consecutive week, as downstream consumers stockpiled for the week-long National Day holiday. Shanghai Metals Market data showed that stocks of primary aluminium across eight consumption areas in China, including SHFE warrants, dropped 27,000 tonnes from a week ago to 939,000 tonnes as of Thursday September 26, after a decline of 6,000 tonnes in the prior week.

The chart below indicates the current status of primary aluminium inventories across all major China markets:

Primary aluminium stocks in Wuxi, Jiangsu and Shanghai dropped 14,000 tonnes and 7,000 tonnes from Thursday September 19 to 283,000 tonnes and 179,000 tonnes as of Thursday September 26. Inventories in Nanhai, Guangdong stood at 262,000 tonnes, a decrease of 5,000 tonnes from Thursday’s total of 267,000 tonnes.

In some areas like Gongyi, Henan, Hangzhou, Zhejiang, and Linyi, Shandong, the inventories dropped by 3,000 tonnes, 1,000 tonnes and 1,000 tonnes from a week ago to 81,000 tonnes, 49,000 tonnes and 8,000 tonnes today. Primary aluminium stocks in Tianjin and Chongqing rose by 2,000 tonnes each to 54,000 tonnes and 23,000 tonnes.