Primary aluminium inventories continue to rise by 8,000 tonnes in China on greater cargo arrival

Shanghai Metals Market found the social inventories of primary aluminium extended its rise across eight major consumption areas, including SHFE warrants, by 8,000 tonnes from Tuesday, October 8, to come in at 977,000 tonnes on Thursday, October 10. According to SMM, increase in cargo arrivals is the primary reason behind the continued growth in primary aluminium stocks.

On October 8, the stocks increased by 75,000 tonnes over the National Day Holiday to stand at 969,000 tonnes. Just before the week-long holiday, the inventories on September 30 were at 894,000 tonnes after declining by about 45,000 tonnes from 939,000 tonnes on Thursday, September 26.

The chart below shows the current status of inventories across China in more details:

The inventories in Wuxi, Jiangsu; and Nanhai, Guangdong have grown by 4,000 tonnes to stand at 274,000 tonnes and 305,000 on October 10, while that in Gongyi, Henan and Chongqing by 2,000 tonnes and 1,000 tonnes to come in at 90,000 tonnes and 22,000 tonnes, respectively. In many cities like Shanghai and Hangzhou, Zhejiang, on the other hand, the inventories have dropped by 1,000 tonnes to 172,000 tonnes and 2,000 tonnes to 52,000 tonnes.

On the increasing stocks of primary aluminium across the Chinese market, the average price of A00 aluminium ingot has recorded a drop today by RMB 70 per tonne to clock at RMB 14,000 tonnes, learned SMM.