Primary aluminium inventories continue to trend lower this week to 592,000 tonnes

According to Shanghai Metals Market, the social inventories of primary aluminium in China continued to decline this week. The stocks across eight consumption areas, including SHFE warrants, came in at 592,000 tonnes after decreasing by 12,000 tonnes over the week, as of Thursday, December 26. Last Thursday, December 19, the inventories had declined by 44,000 tonnes to 604,000 tonnes.

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

In Wuxi, Shanghai, Nanhai, Hangzhou, and Chongqing, the inventories have dropped by 2,000 tonnes, 7,000 tonnes, 5,000 tonnes, 2,000 tonnes, and 4,000 tonnes respectively. So, as of December 26, the inventories there have come in at 191,000 tonnes, 112,000 tonnes, 126,000 tonnes, 52,000 tonnes, and 14,000 tonnes. In Gongyi and Tianjin, on the other hand, the inventories have grown by 7,000 tonnes and 2,000 tonnes to 36,000 tonnes and 56 tonnes respectively, while that in Linyi have remained restrained at 5,000 tonnes.

 But despite the drop in primary aluminium inventories today, the A00 aluminium ingot price has inched down by RMB 70 per tonne to stand at RMB 14,510 per tonne. The average prices are expected to range between RMB 14,490-14,530 per tonne, with spot contract to be traded at a premium price of RMB 160-200 per tonne.