Primary aluminium inventories in China resume a downward trend; Stocks are at 945,000 tonnes

According to Shanghai Metals Market, the social inventories of primary aluminium have resumed a downward trend over the weekend ended on Monday, October 14, followed by an increase in the first week after the National Day holiday.

As per the data, the inventories across eight major consumption areas, including SHFE warrants, have declined by about 32,000 tonnes from 977,000 tonnes on last Thursday, October 10, to come in at 945,000 tonnes, as of October 14.

Lower arrival of stocks or increasing purchase among downstream manufacturers could be a reason for the decline of the inventories.

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

The primary aluminium inventories in Wuxi, Jiangsu; Nanhai, Guangdong; and Gongyi, Henan have decreased by 14,000 tonnes, 1,000 tonnes, and 8,000 tonnes to stand at 260,000 tonnes, 304,000 tonnes, and 82,000 tonnes. In Hangzhou, Zhejiang, Chongqing and Shanghai, the inventories have dropped by 1,000 tonnes and 7, 000 tonnes to stand at 51,000 tonnes, 21,000 tonnes, and 165,000 tonnes, respectively. In Linyi, Shandong, and Tianjin, the inventories have shown restraint at 8,000 tonnes and 54,000 tonnes.

But despite the shrink in primary aluminium inventories, the A00 aluminium ingot price has recorded a significant decline of RMB 170 per tonne to stand at RMB 13,800 per tonne, as of October 14, shows SMM.