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08 OCTOBER 2018 AL CIRCLE

Chinese primary aluminium inventories record a surge during week-long National Day Holiday

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

After a week-long National Day holiday in China, Shanghai Metals Market research team presents an update on the primary aluminium inventory. According to the data shown, the inventories across eight major Chinese consumption areas have grown due to fewer-than-expected cargoes arrival at warehouses. Stocks, including SHFE warrants, have increased by some 14,000 tonnes from Thursday, September 27, to stand at 1.604 million tonnes, as of today, October 8, 2018.

In Wuxi and Jiangsu, the inventory stood at 685,000 tonnes while that in Shanghai and Nanhai, Guangdong at 358,000 tonnes and 239,000 tonnes, respectively. For more details about the current status of primary aluminium inventories, refer to the chart below:

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According to SMM research, the A00 aluminium ingot price also came back with a surge by RMB 30 per tonne after a week-long holiday, to stand at RMB 14300 per tonne. The average price is expected to stand between RMB 14280 per tonne and RMB 14320 per tonne, with spot discounts to settle at RMB 60 per tonne to RMB 20 per tonne.

In the east and south China, the ingot prices climbed RMB 15 per tonne and RMB 30 per tonne to RMB 14290 per tonne and RMB 14370 per tonne, respectively. But in the north, the ingot price displayed a slight exception as it plunged by RMB 20 per tonne and settled at 14310 per tonne.

Fewer purchases from extrusion sector during the holiday also pushed up the downstream inventories in China, SMM research found. As per the record, 6063 aluminium billet stocks across five major consumption areas have increased 22,300 tonnes from September 27 to 139,500 tonnes as of today.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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