Primary aluminium inventories in China extend declines by 45,000 tonnes

Primary aluminium inventories in China extended their declines over the weekend as downstream consumers stockpiled for the week-long National Day holiday. Shanghai Metals Market data showed that social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, stood at 894,000 tonnes as of Monday, September 30, a drop of 45,000 tonnes from 939,000 tonnes as of Thursday, September 26.

The chart below indicates the current status of primary aluminium inventories across all major China markets:

Primary aluminium stocks in Wuxi, Jiangsu dropped 29,000 tonnes from Thursday September 26 to 254,000 tonnes as of Monday, 30 September 2019. Inventories in Shanghai, Nanhai, Guangdong, and Chongqing declined by 3,000 tonnes from Thursday to 176,000 tonnes, 259,000 tonnes, and 20,000 tonnes, respectively.

In some areas like Gongyi, Henan, Hangzhou, Zhejiang, and Tianjin, the inventories stood at 77,000 tonnes, 47,000 tonnes, and 53,000 tonnes as of Monday, 30 September 2019, down 4,000 tonnes, 2,000 tonnes, and 1,000 tonnes. Primary aluminium stocks in Linyi, Shandong remained unchanged at 8,000 tonnes.

A00 aluminium ingot price continued to decline to RMB 13,980 per tonne on Monday. That was down RMB50 per tonne from Friday’s price of RMB 14,030 per tonne. The average prices are expected to range between RMB 13,960 per tonne and RMB 14,000 per tonne.