
According to Shanghai Metals Market, stocks of 6063 aluminium billet across five major consumption areas in China shrank some 11,900 tonnes over the week ended on Thursday, December 20, to stand at 108,600 tonnes.
The reason for this decline could be the smaller arrivals of billets to warehouses and sellers destocking at the year end. This followed after fewer purchases for building materials expanded inventories by 2,600 tonnes last week.
{alcircleadd}The billet inventories in Foshan and Guangdong dropped 7,400 tonnes to stand at 61,000 tonnes while in Wuxi and Jiangsu, the inventories dipped 200 tonnes. But in Huzhou and Zhejiang, the inventory rose by 400 tonnes from 6,200 tonnes, as on December 13, to 6,600 tonnes on December 20.
The below chart indicates the current status of aluminium billet inventories across China:

In the background of billet inventory plunge, the price of aluminium alloys (ADC12) recorded a drop on December 20 from RMB 15,050 per tonne to RMB 15,000 per tonne. Today, the price showed no change, however. Aluminium alloy (A356) and aluminium alloy (A380) also showed restraint today after a drop on the previous day from RMB 14,200 per tonne to RMB 14,150 per tonne and from RMB 15,850 per tonne to RMB 15,800 per tonne, respectively.

But on the other hand, the A00 aluminium ingot price rose today from RMB 13,510 per tonne to RMB 13,560 per tonne, marking a growth by RMB 50 per tonne. The average prices are expected to range between RMB 13,540 per tonne and RMB 13,580 per tonne, with spot discounts to settle at RMB 80 per tonne to RMB 40 per tonne.

In the east, Wuxi, the ingot price today is hovering at RMB 13,555 per tonne after declining by RMB 50 per tonne while in Hangzhou, the price has clocked at RMB 13,590 per tonne after plunging by RMB 60 per tonne. In the south and north market, the prices dropped RMB 40 per tonne and RMB 60 per tonne to stand at RMB 13,730 per tonne and RMB 13,560 per tonne, respectively.
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