Inventories of primary aluminium up by 38,000 tonnes over the weekend

Shanghai Metals Market found social inventories of primary aluminium ingots increased 38,000 tonnes over the weekend ended Monday, March 16, across eight major consumption areas, including SHFE warrants. The inventories stood at 1.631 million tonnes in contrast to 1.559 million tonnes on Monday, March 9, and 1.593 million tonnes on Thursday, March 12.

SMM survey revealed the eight areas, except for Henan’s Gongyi, saw the stocks gaining over the weekend.

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

In Wuxi, Shanghai, and Nanhai, the inventories, as of March 16, are standing higher by 53,000 tonnes, 8,000 tonnes, and 18,000 tonnes from last Monday at 639,000 tonnes, 152,000 tonnes, and 417,000 tonnes, respectively. In Hangzhou and Chongqing, the inventories are up by 5,000 tonnes and 2,000 tonnes over the week at RMB 128,000 tonnes and 15,000 tonnes. In Gongyi, however, the stocks are down by 14,000 tonnes to 210,000 tonnes, while that in Tianjin and Linyi have remained unchanged from the week ago at 58,000 tonnes and 12,000 tonnes, respectively.

But despite the further growth in primary aluminium inventories, the A00 aluminium ingot price today has recorded a rise of RMB 90 per tonne to RMB 12,740 per tonne.

This indicates a rise in demand for the metal on the slow and gradual resumption of production at downstream aluminium plants. According to the reports, many auto-component manufacturers have also recommenced their operations in China. Even Honda Motor Co has reportedly resumed limited operations at its production site in Wuhan, the epicentre of China's coronavirus outbreak.