Primary aluminium inventories extend decline for second straight week due to greater deliveries

According to Shanghai Metals Market, the social inventories of primary aluminium have extended decline over the week ended on Thursday, September 5. SMM data shows the stocks across eight major consumption areas in China, including SHFE warrants, decreased by 27,000 tonnes for the second straight week to stand at 1.006 million tonnes.

On last Thursday, August 29, the inventories had declined by 30,000 tonnes week-on-week to come in at 1.033 million tonnes. This indicates a lower decline today compared to the last Thursday.

The chart below shows the current status of primary aluminium inventories in more details:

So, as we can see that the inventories this week have dropped in almost all the major cities in China because of greater deliveries. Gongyi, Henan has seen the highest decline in inventories of 7,000 tonnes to 98,000 tonnes, followed by Wuxi, Jiangsu where the inventories have dropped by 6,000 tonnes to 303,000 tonnes. In Chongqing, Shanghai, and Hangzhou, Zhejiang, the inventories have inched down by 5,000 tonnes to 15,000 tonnes and 3,000 tonnes to 191,000 tonnes and 50,000 tonnes respectively; while in other cities the inventories have recorded a drop of 1,000 tonnes.

Amidst this, the price of A00 aluminium ingot has continued to be at RMB 14,400 per tonne, instead of recording a rise. The average prices are also expected to range between RMB 14,380 per tonne and RMB 14,420 per tonne, as yesterday.