According to the Shanghai Metals Market, social inventories of primary aluminium continued to decrease across eight major consumption areas, including SHFE warrants. On a weekly basis, inventories decreased by 30,000 tonnes, while on a year plunged by 58,000 tonnes to come in at 1 million tonnes on May 12, 2022. Inventories dropped as traders were motivated to sell, and shipments were smooth across several regions.
The chart below indicates the current status of primary aluminium inventories across China in more details:
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In Wuxi, primary aluminium inventories plunged by 16,000 tonnes week-on-week to stand at 469,000 tonnes due to active sales and slower arrivals. Inventories in Nanhai and Hangzhou decreased by 8,000 tonnes and 7,000 tonnes, respectively, to settle at 214,000 tonnes and 56,000 tonnes as of May 12. In Shanghai, Tianjin, and Chongqing, primary aluminium inventories dipped 1,000 tonnes to close at 57,000 tonnes, 79,000 tonnes, and 5,000 tonnes on Thursday.
In Gongyi, on the other hand, primary aluminium inventories grew by 3,000 tonnes to total 105,000 tonnes on May 12, as spot premiums declined after aluminium prices rebounded and market activities turned brisk. Meanwhile, in Linyi, inventories remained muted at 17,000 tonnes.
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