Primary aluminium inventories in China post a continued downfall of 28000 tonnes over the weekend

According to the Shanghai Metals Market, social inventories of primary aluminium in China further dropped across eight major consumption areas, including SHFE warrants, on Monday, June 20. As per the data revealed, inventories totalled 757,000 tonnes, seeing a downfall of 28,000 tonnes over the weekend and a plunge of 68,000 tonnes week-on-week.  Compared to the end of May, inventories on Monday recorded a sharp fall of 165,000 tonnes.

The decline on Monday was primarily led by Wuxi and Nanhai due to transfer of cargoes to other warehouses and increased downstream purchases after aluminium prices pulled back. The chart below indicates the current status of inventories across China in more details:

Among major Chinese provinces, primary aluminium inventories declined the highest in Wuxi by 19,000 tonnes over the weekend to come in at 292,000 tonnes, followed by the downfall of 10,000 tonnes in Nanhai to 187,000 tonnes. In Tianjin and Chongqing, primary aluminium inventories dipped by 2,000 tonnes and 1,000 tonnes, respectively, to close at 80,000 tonnes and 3,000 tonnes, learned SMM.

Meanwhile, in Gongyi, primary aluminium inventories gained 4,000 tonnes to come in at 80,000 tonnes as of June 20. On the other hand, in Shanghai, Hangzhou, and Linyi, primary aluminium inventories remained muted at 38,000 tonnes, 60,000 tonnes, and 17,000 tonnes, respectively.