China’s primary aluminium inventory hugely slumps W-o-W by 56,000 tonnes on March 16

According to the Shanghai Metals Market, China's primary aluminium inventories massively fell by 56,000 tonnes on a weekly basis across eight major consumption areas, including SHFE warrants. This can be considered a major fall after two months of successive inventory accumulation. On Thursday, March 16, the inventories came in at 1,211,000 tonnes, which in comparison with the second Monday of this month, March 13, hugely plummeted by 35,000 tonnes. The social aluminium inventories built up 121,000 tonnes Y-o-Y but have continuously fallen in the past two weeks.

The inventory loss was spearheaded by Foshan, where augmented consumption and dropping prices instigated downstream purchase interests. Output cuts in Yunnan in late February also slashed supply in Foshan. Inventory stocks in Wuxi and Gongyi started to fall subsequently. Stocks in Gongyi specifically followed an upward trajectory.

Last week, on March 9, the primary aluminium inventories stood at 1,267,000 tonnes, which slumped across eight major consumption areas to come in at 1,211,000 tonnes on March 16, Thursday, with a W-o-W plunge.

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

The eight major provinces in China have seen considerably receding inventories, with aluminium inventory increasing only in Shanghai by 6,000 tonnes to 57,000 tonnes. In Nanhai, the aluminium inventory has dropped by 26,000 tonnes to 284,000 tonnes. Other than that, aluminium inventories have marked a havoc decline in Wuxi and Gongyi by 17,000 tonnes settling down at 450,000 tonnes and 227,000 tonnes, respectively. Lastly, in Hangzhou, the aluminium inventory dived down by 2,000 tonnes, resting at 73,000 tonnes.

The aluminium inventories in Tianjin, Chongqing and Linyi have all refrained from any notable alteration, closing at 76,000 tonnes, 15,000 tonnes and 29,000 tonnes.