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22 NOVEMBER 2018 AL CIRCLE

Downstream purchases brought down aluminium billet inventories slightly in China

EDITED BY : HEENA IQBAL 2MINS READ

Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, dropped by some 29,000 tonnes from Thursday November 15 to stand at 1.424 million tonnes as of Thursday November 22, Shanghai Metals Market data showed.  Limited cargoes arrived in social warehouses this week and this accounted for the decline in stocks.

Compared to last Thursday, inventories in Wuxi and Jiangsu plunged by 19,000 tonnes to stand at 609,000 tonnes while that in Nanhai and Guangdong dropped by 9,000 tonnes to clock at 20,000 tonnes. The current inventory status in the major Chinese cities is as follow:

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The A00 aluminium ingot price today, on November 22, rose by RMB20 per tonne after a decline for the past two consecutive days. The price stood at RMB 13,760 per tonne today. The average prices are expected to range between RMB 13,740 per tonne and RMB 13,780 per tonne, with spot discounts to settle at RMB 50 per tonne to RMB 10 per tonne.

Aluminium ingot prices also registered a hike in all major China markets today. Aluminium ingot prices in East (Wu Xi) and East (Hang Zhou) are hovering at RMB 13750 per tonne and 13770 per tonne respectively. In the south and north, the prices increased by RMB 20 per tonne and RMB 10 per tonne to stand at  RMB 13830 per tonne and RMB 13755 per tonne.

In another update from SMM, stocks of 6063 aluminium billet across all five major consumption areas in China stood at 117,600 tonne on Thursday November 22, down by some 500 tonnes over the week. For more details, refer to the chart below.

Downstream consumers purchased as cargoes arrived, and this changed little the billet stocks. Arrivals varied in different areas on the week, SMM learned. 

The price of aluminium alloys (ADC12) recorded no change on November 22.The price is still hovering at RMB 15,350 per tonne. The prices of aluminium alloy (A356) and aluminium alloy (A380) remained unchanged at RMB14450 per tonne and RMB16050 per tonne.


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EDITED BY : HEENA IQBAL 2MINS READ

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