
According to Shanghai Metals Market, primary aluminium inventories across eight major consumption areas in China, including SHFE warrants, have recorded a drop by some 38,000 tonnes from a week ago to come in at 1.386 million tonnes on Thursday, November 29.
On last Thursday, November 22, the social inventories of primary aluminium were at 1.424 million tonnes; hence, today the inventories registered a 2.7 per cent week-over-week decline exceeding the 2 per cent drop in the previous week. The reason is the declined shipment due to recent supply cuts.
{alcircleadd}It is estimated to take 13.8 days to deplete current social stocks of primary aluminium ingots in China, which is a relatively high level.
The below chart shows the current status of primary aluminium inventories across China as of November 29:

Alongside, the A00 aluminium ingot price continues to shrink on weaker demand across the Chinese markets, SMM found. Today, the ingot price hovers at RMB 13,580 per tonne, compared to RMB 13,640 per tonne yesterday, marking a drop by RMB 60 per tonne. The average prices are expected to range between RMB 13,560 per tonne to RMB 13,600 per tonne, with spot discounts to settle at RMB 70 per tonne to RMB 30 per tonne.

As the dip in ingot prices has touched all the major markets in China, the north is found being hit a maximum. The A00 ingot price there plunged by RMB 80 per tonne to stand at RMB 13,570 per tonne while in the south and east, the prices shrank by RMB 65 per tonne and RMB 30 per tonne to stand at RMB 13,565 per tonne and RMB 13,650 per tonne, respectively.
Stocks of 6063 aluminium billet across five major consumption areas in China have recorded a rise, on the other hand, by some 3,400 tonnes over the week ended on Thursday, November 29 to stand at 121,000 tonnes, SMM data showed.
Weak downstream demand on the week accounted for the increase, SMM learned.
The below chart shows the status of aluminium billet inventories across China as of November 29:

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