Shanghai Metals Market found social inventories of primary aluminium in China fell over the week ended on September 19, as some regions saw more outflows. SMM data shows the stocks across eight major consumption areas in China, including SHFE warrants, decreased by 6,000 tonnes from 972,000 tonnes on September 12 to come in at 966,000 tonnes. From Monday, September 16, when the inventories were at 978,000 tonnes, the stocks today declined by 12,000 tonnes.
The chart below shows the current status of primary aluminium inventories in more details:
{alcircleadd}As the above chart shows, the inventories in Nanhai, Guangdong; Hangzhou, Zhejiang; Shanghai; and Tianjin, have dropped by 8,000 tonnes, 1,000 tonnes, 4,000 tonnes, and 2,000 tonnes to stand at 267,000 tonnes, 50,000 tonnes, 186,000 tonnes, and 52,000 tonnes, respectively. In other cities like Wuxi, Jiangsu; Gongyi, Henan; and Chongqing, the inventories have climbed up by 3,000 tonnes and 4,000 tonnes to come in at 297,000 tonnes, 84,000 tonnes, and 21,000 tonnes, respectively.
However, despite this fourth straight week of decline in social inventories of primary aluminium, the A00 aluminium ingot price has inched down by RMB 70 per tonne to stand at RMB 14,270 per tonne.
The low price trend of A00 aluminium ingot for over a week has triggered the consumption of primary aluminium among downstream plants, according to SMM, resulting in the decline in inventories. Moreover, production has slowed down due to the slow resumption of primary aluminium smelters, leading to limited stock arrivals.
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