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05 JULY 2018 AL CIRCLE

China’s primary inventory continues to decline slower on narrow consumption

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The decline in China’s social inventory of primary aluminium continued to slow down over the week ended July 5, 2018, according to the data showed by Shanghai Metals Market. This could be attributed to the slowdown in consumption, resulting in suppressed purchasing interest among downstream consumers.

As of Thursday, July 5, inventories of primary aluminium, including SHFE warrants, across eight major consumption areas shrank only 1,000 tonnes from Monday, July 2, to stand at 1.83 million tonnes. The figure fell 10,000 tonnes from last Thursday, June 28, compared to a drop of 40,000 in the week before.

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In some of the Chinese cities like Wuxi and Jiangsu, Gongyi and Henan, and Linyi and Shandong, the inventories witnessed a rise today, on July 5, in compare with Monday, July 2. While the inventory in Wuxi and Jiangsu grew from 774,000 tonnes to 777,000 tonnes, in Gongyi and Henan, and Linyi and Shandong, the inventory increased from 179,000 tonnes to 181,000 tonnes and from 28,000 tonnes to 29,000 tonnes, respectively.

More details are as follows:

According to the latest data by SMM, the A00 aluminium ingot price dipped from RMB 13930 per tonne, as of July 4, to RMB 13870 per tonne on July 5, 2018. The average prices are expected to range between RMB 13850 per tonne and RMB 13890 per tonne, with spot discounts to settle at RMB 50 per tonne to RMB 10 per tonne.

All the major Chinese markets also witnessed a dip in aluminium ingot price. While in the east, the price dipped from RMB 13960 per tonne to RMB 13885 per tonne, in south and north, the prices plunged from RMB 14040 per tonne to RMB 13950 per tonne and from RMB 13975 per tonne to RMB 13890 per tonne, respectively.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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