Primary aluminium inventories record speedy growth on Monday, resulting in sharp A00 aluminium ingot price decline

Aluminium inventories in China grew over the weekend by 21,000 tonnes, in contrast to 20,000 tonnes in the whole last week ended on January 16. Concentrated arrivals of stocks in some regions and weakening consumption as the world gears up for the Lunar New Year holidays were the two important factors for the faster growth as of today, found Shanghai Metals Market.

SMM data showed the inventories increased to 651,000 tonnes across eight major consumption areas in China, including SHFE warrants as of Monday, January 20.

In Wuxi, Nanhai, Hangzhou, and Tianjin, the inventories have increased by 12,000 tonnes, 7,000 tonnes, 6,000 tonnes, 1,000 tonnes over the weekend to stand at 213,000 tonnes, 139,000 tonnes, 72,000, and 58,000 tonnes respectively. In Shanghai, Chongqing, and Gongyi, however, the inventories have decreased by 1,000 tonnes and 3,000 tonnes to hover at 102,000 tonnes and 50,000 tonnes, respectively.

On the weak consumption amidst a rise in primary aluminium stocks, the A00 aluminium ingot price has recorded a sharp decline today, on January 20, by RMB 200 per tonne to RMB 14,350 per tonne, learned SMM. The average prices are expected to range between RMB 14,330 per tonne and RMB 14,370 per tonne, with spot contract to be traded at a discount and premium price of RMB 20 per tonne.

Among all the cities, Wuxi and Hangzhou have seen the highest drop of RMB 240 per tonne to RMB 14,300 per tonne and RMB 14,290 per tonne in A00 aluminium ingot price, followed by Shenyang, Gongyi, and Chongqing where the price has plunged by RMB 220 per tonne and RMB 210 per tonne to RMB 14,340 per tonne, RMB 14,240 per tonne, and RMB 14,380 per tonne, respectively. In Tianjin and Linyi, the price has declined by RMB 180 per tonne and RMB 190 per tonne to RMB 14,330 per tonne and RMB 14,360 per tonne, respectively.