Decline rate in China’s primary aluminium inventories increases W-o-W totalling 785,000 tonnes on June 16

According to the Shanghai Metals Market, primary aluminium inventories in China witnessed a sharp decline of 68,000 tonnes week-on-week. Therefore, as of Thursday, June 16, the inventories totalled 785,000 tonnes, which in comparison with Monday, June 13, dwindled by 40,000 tonnes.

Last week, on June 9, primary aluminium inventories fell by 29,000 tonnes from the earlier week across eight major consumption areas, including SHFE warrants, to come in at 853,000 tonnes. This reflects an increased rate of downfall in inventories, attributing to the active transactions amid falling aluminium prices.

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

Among eight major Chinese provinces, Wuxi experienced the highest fall on June 16, as some stocks were moved out of the social warehouses with the influences of the previous aluminium pledge scandal, coupled with active purchase by downstream users. According to SMM, primary aluminium inventories in Wuxi came in at 311,000 tonnes, seeing a plunge of 37,000 tonnes W-o-W. Nanhai saw the second highest decline in inventories by 22,000 tonnes from 219,000 tonnes on June 9 to 197,000 tonnes on June 16.

In Shanghai and Gongyi, inventories dropped by 5,000 tonnes and 4,000 tonnes to 38,000 tonnes and 76,000 tonnes, while inventories in Hangzhou and Chongqing inched down by 1,000 tonnes to 60,000 tonnes and 4,000 tonnes, respectively.

Meanwhile, in Tianjin, inventories gained 2,000 tonnes over the week to stand at 82,000 tonnes, while that in Linyi continued to remain restrained at 17,000 tonnes.