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09 MAY 2019 AL CIRCLE

Chinese primary aluminium inventories continue to fall; A00 aluminium ingot price shows restraint

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Primary aluminium inventories in China have recorded further downfall this week ended on May 9 due to limited arrivals and strong demand, found Shanghai Metals Market. This has brought down the stocks to 1.409 million tonnes, down 33,000 tonnes from 1.44 million tonnes on May 5 across eight major consumption areas in China, including SHFE warrants.

In Wuxi and Jiangsu, the primary aluminium inventory has dropped by some 11,000 tonnes to stand at 506,000 tonnes; while that in Shanghai, Nanhai and Guangdong, and Gongyi and Henan, the inventories are down by some 7,000 tonnes to hover at 277,000 tonnes, 9,000 tonnes to 310,000 tonnes, and 2,000 tonnes to 99,000 tonnes, respectively.

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

But despite the further downfall in inventories, the A00 aluminium ingot price has registered no hike; rather shown restraint at RMB 14,080 per tonne, learned Shanghai Metals Market. The average prices have also remained unchanged ranging between RMB 14,060 per tonne and RMB 14,100 per tonne. Spot aluminium contract is likely to be traded at a discount of RMB 10 per tonne to a premium of RMB 50 per tonne.

Only in a few major cities, the ingot price has grown such as Foshan, Chongqing, and Tianjin from RMB 14,080 per tonne to RMB 14,120 per tonne, from 14,100 per tonne to RMB 14,110 per tonne, respectively.

Input costs like alumina, pre-baked anode, and bauxite have remained unchanged today. 


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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