Primary aluminium inventories extend decline over the weekend; A00 aluminium ingot price fails to rise

According to Shanghai Metals Market, the social inventories of primary aluminium in China have extended drop over the weekend by 6,000 tonnes, across eight major consumption areas, including SHFE warrants. The inventories are thus, hovering at 1.029 million tonnes, as of July 29.

Arrivals of fewer cargoes at social inventories could be attributed to the further decline in stocks.

From Thursday, July 25, the inventories in Wuxi, Jiangsu, and Shanghai have recorded a drop by 7,000 tonnes and 1,000 tonnes to stand at 307,000 tonnes and 199,000 tonnes, respectively. The inventories in Hangzhou, Zhejiang have registered a decline too, by 3,000 tonnes to 62,000 tonnes, learned Shanghai Metals Market.

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

But despite the fewer cargoes and lowered inventories of primary aluminium, the price of A00 aluminium ingot has shied away from recording a rise. It has rather decreased by RMB 80 per tonne to RMB 13,860 per tonne, as of July 29. The average prices are expected to range between RMB 13,840 per tonne and RMB 13,880 per tonne, with spot contract to be traded at a premium and discount price of RMB 20 per tonne.

In Chongqing, the aluminium ingot price has recorded the highest drop of RMB 80 per tonne to RMB 13,860 per tonne, followed by Foshan, Hangzhou, and Gongyi, where the prices have dwindled by RMB 70 per tonne to RMB 13,870 per tonne, RMB 13,875 per tonne, and RMB 13,740 per tonne, respectively. In Wuxi and Shenyang, the prices have inched down by RMB 65 per tonne to RMB 13,865 per tonne and RMB 13,830 per tonne.