Primary aluminium inventories in China record steep growth for second consecutive week after CNY

According to Shanghai Metals Market, the social inventories of primary aluminium in China have jumped today, on February 13, for the second consecutive week after the Chinese New Year Holiday. SMM data shows, the inventories across the eight major consumption areas, including SHFE warrants, are standing at 1.09 million tonnes after increasing by about 148,000 tonnes over the week.

Higher arrival of shipments by rail and subdued demand amid the ongoing coronavirus outbreak are the two major reasons for the significant rise of primary aluminium inventories today.

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

As the chart above indicates, the primary aluminium inventories in Wuxi have come in at 385,000 tonnes after rising by 43,000 tonnes, while that in Nanhai, Gongyi, and Hangzhou at 234,000 tonnes, 164,000 tonnes, and 121,000 tonnes after a rise of 26,000 tonnes, 56,000 tonnes, and 18,000 tonnes respectively. Shanghai and Linyi have seen a marginal growth of 2,000 tonnes to 108,000 tonnes and 11,000 tonnes. In Chongqing, however, the inventories have remained restrained at 11,000 tonnes.

On the further jump of inventories, the price of A00 aluminium ingot stands lower today by RMB 40 per tonne to RMB 13,610 per tonne, according to SMM.