China’s primary aluminium social inventories decline by 53,000 tonnes on improved buying sentiment

Social inventories of primary aluminium in China have decreased after six consecutive weeks of rising, owing to the improved buying sentiment among the downstream market. According to the Shanghai Metals Market, aluminium inventories have dwindled by 53,000 tonnes across eight major Chinese consumption areas, including SHFE warrants, to come in at 1.09 million tonnes versus 1.14 million tonnes last Thursday, March 10.

In the spot market, the goods holders actively made shipments amid falling futures prices, along which the downstream demand picked up, reviving the tractions of aluminium ingot.

Primary aluminium social inventories are expected to drop further, and the market shall watch if the resurging of COVID-19 would affect market arrivals and shipments.

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

Specifically speaking, inventories in Gongyi and Nanhai have plunged by 27,000 tonnes and 26,000 tonnes, to come in at 154,000 tonnes and 243,000 tonnes, while inventories in Hangzhou have dropped by 5,000 tonnes to stand at 78,000 tonnes. On the other hand, inventories in Shanghai and Linyi have dipped by only 2,000 tonnes to settle at 21,000 tonnes and 66,000 tonnes.

Meanwhile, primary aluminium inventories in Wuxi and Chongqing have grown by 8,000 tonnes and 1,000 tonnes to close the week ending March 17 at 442,000 tonnes and 7,000 tonnes. In Tianjin, inventories have remained restrained at 78,000 tonnes, learned SMM.