Primary aluminium inventories increase in China after over three months, stocks peg at 712,000t

After declining for more than the last three months, the social inventories of primary aluminium in China have recorded a rise across eight major consumption areas, including SHFE warrants, to stand at 712,000 tonnes, as of Monday, July 20, found the Shanghai Metals Market. Last week, on July 16, the inventories stood at 708,000 tonnes after declining by 4,000 tonnes from the previous day. This means the inventories over this weekend ending on July 20 have climbed up by 4,000 tonnes.

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

Shanghai has seen the highest growth in primary aluminium inventories today of 6,000 tonnes to stand at 112,000 tonnes. In Wuxi and Nanhai, the inventories have increased by 3,000 tonnes and 2,000 tonnes, respectively, to come in at 219,000 tonnes and 177,000 tonnes.

However, in other Chinese markets, the inventories have either recorded plunges or remained restrained. For instance, in Gongyi and Tianjin, the primary aluminium stocks have decreased by 3,000 tonnes and 2,000 tonnes to come in at 39,000 tonnes and 57,000 tonnes, respectively. In Hangzhou and Linyi, the stocks have inched down by 1,000 tonnes to 99,000 tonne and 5,000 tonnes, while that in Chongqing have remained restrained at 4,000 tonnes.

But despite the hike in inventories, the A00 aluminium ingot price has grown by RMB 110 per tonne over the weekend to stand at RMB 14,480 per tonne, attributing to active purchase by downstream manufacturers.