Primary aluminium inventories in China record higher downfall this week to stand below 600 thousand tonnes

Social inventories of primary aluminium in China have extended downfall for the sixth consecutive week by 19,000 tonnes week-on-week, found the Shanghai Metals Market. SMM data shows, the inventories have dwindled across the eight major Chinese consumption areas, including SHFE warrants, to stand at 596,000 tonnes on Thursday, November 26.

Last week, on November 19, the inventories had declined by 14,000 tonnes over the week to come in at 615,000 tonnes. This means the downfall this week has expanded by 5,000 tonnes. Higher demand for domestic primary aluminium due to strict restrictions on imported aluminium scrap coupled with slower arrivals of stocks at warehouses has been leading to the incessant decline in inventories.

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

Nanhai has seen the highest downfall in primary aluminium inventories this week. The stocks there have decreased by 7,000 tonnes to stand at 164,000 tonnes, followed by the decline of 6,000 tonnes in Shanghai to peg at 93,000 tonnes. The inventories in Wuxi have lost 4,000 tonnes to hover at 163,000 tonnes, while that in Hangzhou and Tianjin have dropped by 1,000 tonnes to 67,000 tonnes and 44,000 tonnes, respectively.

In Gongyi, Chongqing, and Linyi, primary aluminium inventories have, however, remained restrained at 58,000 tonnes, 2,000 tonnes, and 5,000 tonnes, respectively.