
Shanghai Metal Market research found a further drop in social inventories of primary aluminium across eight major consumption areas in China. The stock, including SHFE warrants, came in at 1.438 million tonnes over the weekend ended on Monday, November 19, down some 15,000 tonnes from last Thursday, November 15.
The reason for this incessant week-on-week fall in primary aluminium inventories could be the production cuts across smelters due to increased losses.
{alcircleadd}Compared to last Thursday, inventories in Wuxi and Jiangsu plunged by some 15,000 tonnes to stand at 613,000 tonnes while that in Nanhai and Guangdong, and Gongyi and Henan dropped by some 2,000 tonnes and 1,000 tonnes to clock at 207,000 tonnes and 75,000 tonnes, respectively. On the other hand, inventories in Shanghai and Chongqing recorded a slight hike by some 4,000 tonnes and 1,000 tonnes to stand at 345,000 tonnes and 25,000 tonnes, respectively.
The below chart indicates the status of the current primary aluminium inventories in China in more details:

In this background, the A00 aluminium ingot price in China registered a hike over the weekend ended on November 19, by some RMB 90 per tonne to stand at RMB 13,750 per tonne, SMM found. After November 8, the ingot price showed a hike two days in a row. Last day, on November 16, the price increased from RMB 13,640 per tonne to RMB 13,660 per tonne and today, it rose further to RMB 13,750 per tonne. The average prices are expected to range between RMB 13,730 per tonne and RMB 13,770 per tonne, with spot discounts to settle at RMB 60 per tonne to RMB 20 per tonne.

In the east, the price rose by RMB 90 per tonne to stand at RMB 13,755 per tonne while in the south and north, the prices increased by RMB 100 per tonne and RMB 95 per tonne to close at RMB 13,840 per tonne and RMB 13,770 per tonne, respectively.
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