Chinese primary aluminium inventory drops 49,000 tonnes; A00 ingot price records third consecutive rise

Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, stood at 1.59 million tonnes as of Thursday April 18, Shanghai Metals Market data showed. Inventories declined by about 49,000 tonnes from Thursday April 11. Continued resumption of downstream demand lowered the primary aluminium inventories.

In Wuxi, Jiangsu, and Nanhai, Guangdong, stocks of primary aluminium declined 14,000 tonnes and 15,000 tonnes from Thursday April 11 to stand at 572,000 tonnes and 359,000 tonnes respectively. Stocks in Gongyi, Henan and Hangzhou, Zhejiang dropped to stand at 131,000 tonnes and 118,000 tonnes. The chart below indicates the current status of primary aluminium inventory across China:

In another update from SMM, A00 aluminium ingot price records third consecutive rise today, April 19, 2019. Aluminium ingot price rose from RMB14010 per tonne to RMB14050 per tonne, representing an increase of RMB40 per tonne. The average price is expected to range at RMB 14030-14070 per tonne. Spot aluminium contract is likely to be traded at discount of RMB20 per tonne to premium of RMB20 per tonne.

In East (Wuxi), ingot price increased RMB10 per tonne to RMB14040 per tonne. Aluminium ingot price in East (Hangzhou) market stood at RMB14075 per tonne, up RMB30 per tonne. In South China market aluminium price increased to RMB14050 per tonne. North aluminium price increased to RMB14010 per tonne.

The price of Aluminium Alloy (A356) stood at RMB14750 per tonne today, up RMB50 per tonne from RMB14700 per tonne. The price is expected to range at RMB 14700-14800 per tonne.