Downstream Products News - Market

Chinese aluminium billet inventories record the biggest weekly drop on poor production and transportation shortage

  | AL Circle   |

According to Shanghai Metals Market, the week ended on December 20 recorded the biggest weekly decline in social aluminium billet inventories in last eight months. The inventories dropped 11,900 tonnes because of smaller arrivals and sellers destocking at the year-end. Deliveries from social warehouses, however, continued to pick up from December 24, SMM learned further.

Production cuts at aluminium smelters lowered supplies of molten aluminium, which finally resulted in poor production of aluminium billet and thus, the lowered inventories. Moreover, slow deliveries of cargoes due to a shortage in transportation and logistics in Xinjiang, and high freight charges at the end of the year accounted for the limited arrivals of aluminium billet last week.

This overall situation last week cropped cash flow issues, which in turn led billet producers lower offers to boost purchases. This was reflected by dipping processing charges for aluminium billet in China’s eastern and southern markets.

The aluminium alloys (ADC12) price from December 19 to December 20 dropped in the China market from RMB 15,100 per tonne to RMB 15,050 per tonne and then to RMB 15,000 per tonne, respectively. This shows both the days recorded the aluminium alloys (ADC12) price drop by RMB 50 per tonne. Since then, the price showed no change until now.

The price of aluminium alloy (A356) on December 20 also dropped from RMB 14,200 per tonne to RMB 14,150 per tonne while the aluminium alloy (A380) price on the same date plunged from RMB 15,850 per tonne to RMB 15,800 per tonne.

SMM data showed that stocks of 6063 aluminium billet across five major consumption areas shrank some 11,900 tonnes over the week ended Thursday, December 20, to stand at 108,600 tonnes. Social warehouses across those areas saw 50,900 tonnes of aluminium billet delivered in the week ended December 24.

Edited By:

This news is also available on our App 'AlCircle News' Android | iOS

Related Business Leads
Selling offer Aluminium Sheet Scrap
Looking for buyers of aluminium sheet scrap Price - INR 300 / Kg Destination - CIF Bangladesh Purity of Scrap - 97%
Posted On : 05 Dec 2023

Interested to buy aluminium extrusion 6063 scrap. Place of Origin - Africa
Posted On : 05 Dec 2023

Buying request Aluminium UBC Scrap
Interested to buy aluminium scrap. Destination - Kolkata, India
Posted On : 27 Nov 2023

Interested to buy surplus aluminium beryllium master alloys. Destination - India
Posted On : 24 Nov 2023

Buying request Aluminium UBC Scrap
Interested to buy aluminium ubc scrap. Destination - Vietnam Preferred Location - Any place  
Posted On : 23 Nov 2023
Alternate Text
EPIQ Machinery

A world class equipment designer specialized in developing innovative & effective solutions for heavy equipment, vehicles, and material handling systems

Alternate Text

Leading manufacturer of value-added equipment for the aluminum casthouse

Alternate Text
Jagannath Company

Manufacturers & Supplier of Magnesium Metal and Aluminium Foundry Chemicals

Alternate Text

A supplier of proven systems and an expert adviser in aluminum casthouse technology, offering its services worldwide to the aluminum industry.

Alternate Text

Global supplier of aluminium alloy and base metals from Africa