Primary aluminium inventories in China soar by 90,000 tonnes due to poor deliveries amid epidemic outbreak

According to Shanghai Metals Market, the social inventories of primary aluminium, across eight major consumption areas in China, rose over the weekend by 90,000 tonnes to 1.04 million tonnes, as of Monday, February 10. Limited arrival of stocks and lower shipments leaving social warehouses amid an epidemic outbreak is believed to have increased the primary aluminium inventories.

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

The stocks in Gongyi have seen the highest growth of 32,000 tonnes to stand at 140,000 tonnes, followed by Wuxi and Nanhai, where the stocks have respectively surged by 23,000 tonnes and 22,000 tonnes to 365,000 tonnes and 230,000 tonnes. In Hangzhou, the inventories have increased by 10,000 tonnes to 113,000 tonnes, while Tianjin and Linyi have seen the lowest growth of 1,000 tonnes to 59,000 tonnes and 10,000 tonnes, respectively. Only in Chongqing, the inventories have recorded no change from the previous day, February 6.

But despite the significant surge in primary aluminium inventories, the A00 aluminium ingot price has recorded growth for the fourth consecutive day, found Shanghai Metals Market. The price after growing by RMB 40 per tonne has pegged at RMB 13,600 per tonne, as of February 10. Improved primary aluminium transactions in the spot market as consumers are stockpiling for the future has bolstered the price hike.