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24 OCTOBER 2019 AL CIRCLE

Further decline in primary aluminium inventories by 34,000t lifts A00 aluminium ingot price in China

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

Social inventories of primary aluminium have further extended decline this week, marking the second consecutive week-on-week fall, found Shanghai Metals Market. Data shows the stocks across eight major consumption areas in China, including SHFE warrants, decreased by 34,000 tonnes from a week ago to stand at 882,000 tonnes, as of Thursday, October 24.

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

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Primary aluminium inventories drop to 882,000 tonnes

October 10 was the last day when the social inventories of primary aluminium had increased in China by 8,000 tonnes on greater cargo arrival. Post that, the inventories started recording incessant drops. On last Thursday, October 17, they declined by 61,000 tonnes to come in at 916,000 tonnes. This shows the decline was higher last week by 27,000 tonnes.

Limited arrival of stocks continues to be the primary reason behind the week-on-week drops in primary aluminium inventories.

Aluminium foil report

Other than Linyi, Shandong where the inventories have remained restrained and Chongqing where the inventories have increased, all other cities in China have witnessed decline in primary aluminium stocks.

On this, the A00 aluminium ingot price has registered a rise today, October 24, by RMB 50 per tonne to stand at RMB 13,990 per tonne. The average prices are expected to range between RMB 13,970 per tonne and RMB 14,010 per tonne, with spot contract to be traded at a premium price of RMB 70-100 per tonne.

A00 aluminium ingot price rises by RMB50/t

Shanghai Metals Market explained on Wednesday, October 23, that Shanghai spot aluminium premiums exceeded RMB 100 per tonne for the first time since April, primarily attributing to falling inventories and imminent upgrading of value-added tax system tightened supply.

In Foshan, Wuxi, and Chongqing, the aluminium ingot price has climbed up by RMB 50 as well to stand at RMB 13,940 per tonne, RMB 14,000 per tonne, and RMB 13,970 per tonne, while that in Gongyi, Shenyang, and Tianjin has grown by RMB 65 per tonne and RMB 60 per tonne to RMB 13,900 per tonne, RMB 13,960 per tonne, and RMB 13,970 per tonne.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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