China’s primary aluminium inventory soars on a weekly scale by 113,000 tonnes as of February 2

According to the Shanghai Metals Market, China's primary aluminium inventories massively increased by 113,000 tonnes on a weekly basis across eight major consumption areas, including SHFE warrants. On Thursday, February 2, the inventories totalled 104,70,00 tonnes, which in comparison with the last Monday of the previous month, January 30, escalated by 61,000 tonnes. However, the inventories in China recorded a surge of 181,000 tonnes from the same period last year. This can entirely be attributed to the reopening of the metal market after the elongated Chinese New Year Holidays.

Actually, most of the downstream units will not regain full production rate until the Lantern Festival is over, leaving the prevailing trading arena for the basic traders. As SMM claims, some of the cargoes are still stuck in logistics, with the probability of arriving in the upcoming week. Therefore, it can be foretold that the social aluminium ingot inventory will positively expand the next week.

Last week, on January 28, primary aluminium inventories stood at 934,000 tonnes, which soared across eight major consumption areas to come in at 1,047,000 tonnes on February 2, Thursday, after the Chinese New Year.

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

The eight major consumption areas in China all saw inventory accumulation, with aluminium ingot inventory rising the highest in Wuxi by 48,000 tonnes. In Nanhai, the inventory escalated by 41,000 tonnes, while in Gongyi the total inventory came in with a 22,000 tonnes hike. Other than that, in Tianjin, the aluminium ingot inventory surged by 2,000 and in Shanghai, the whole strength was boosted by 1,000 tonnes.

Only, in Hangzhou, the aluminium ingot inventory dropped by 1,000 tonnes. Lastly, in Chongqing and Linyi there was no inventory accumulation.