Limited consumption of downstream aluminium curbs billet inventory decline in China

Shanghai Metals Market found the aluminium billet inventories dropped over the week, marking the third consecutive weekly fall, but at a slower pace as consumption weakened.

According to the data, the stocks of 6063 aluminium billet shrank 1,900 tonnes to stand at 116,200 tonnes across five major consumption areas, as of Thursday, October 31, compared to the decline of 11,000 tonnes to 118,100 on October 24. On October 17, the stocks decreased by 7,600 tonnes over the week to come in at 129,200 tonnes.

The chart below indicates the current status of aluminium billet inventories across major markets in China:

So, the above chart indicates that the billet inventories only fell in Foshan, Guangdong by about 9,000 tonnes to stand at 55,000 tonnes; while in all other the markets the stocks recorded a rise. In Wuxi, Jiangsu, the inventories grew by 300 tonnes to 19,200 tonnes and in Changzhou, Jiangsu by 1,300 tonnes to 17,300 tonnes. Huzhou, Zhejiang; and Nanchang, Jiangxi also witnessed a rise in inventories by 4,000 tonnes and 1,500 tonnes to stand at 14,000 tonnes and 10,700 tonnes, respectively.

However, the price of aluminium alloys (ADC12) remained unchanged today, on October 31, at RMB 14,150 per tonne. Also, the prices of aluminium alloy (A356) and aluminium alloy (A380) showed restraint at RMB 14,600 per tonne and RMB 15,000 tonnes, respectively.