Chinese primary aluminium social inventories grow and so as A00 aluminium ingot price

Social inventories of primary aluminium in China have further extended a growth over the weekend ended on Monday, January 28, as some downstream consumers begun Chinese New Year break resulting in lowered consumptions, Shanghai Metals Market (SMM) found. Thus, after a further rise, the inventories across eight major Chinese consumption areas, including SHFE warrants, have come in at 1.334 million tonnes, up 31,000 tonnes from Thursday, January 24, SMM data showed.

In Wuxi and Jiangsu, the primary aluminium inventories have increased from 489,000 tonnes to 502,000 tonnes, up 13,000 tonnes but in Shanghai, the inventories have dropped by 1,000 tonnes from 300,000 on January 24 to 299,000 on January 28. However, in Nanhai and Guangdong, and Hangzhou and Zhejiang, the inventories have grown by 10,000 tonnes and 13,000 tonnes to stand at 192,000 tonnes and 130,000 tonnes, respectively.

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

In this background, the A00 aluminium ingot price has also recorded a rise in China as on January 28, found SMM data. From RMB 13,400 per tonne, the price has grown to RMB 13,410 per tonne today, marking a rise by RMB 10 per tonne over the weekend. The average prices are expected to range between RMB 13,390 per tonne and RMB 13,430 per tonne, with spot discounts to settle at RMB 100 per tonne to RMB 60 per tonne.

In the east (Wuxi and Hangzhou), the ingot prices have grown by RMB 20 per tonne and RMB 30 per tonne respectively to stand at RMB 13,420 per tonne. In the north, the price has increased by RMB 10 per tonne to hover at RMB 13,400 per tonne, but in the south, it has recorded a drop by RMB 10 per tonne to RMB 13,470 per tonne.