Rebound in downstream aluminium consumption lowers aluminium billet inventories by 7,600t

Shanghai Metals Market found that 6063 aluminium billet stocks, across five major consumption areas in China, have recorded a decline by 7,600 tonnes to 129,200 tonnes on Thursday, October 17, followed by two consecutive rises after the Chinese National Day holiday. Recovering consumption is one of the reasons for this decline, according to SMM.

Since the Chinese market resumed after the National Day holiday, aluminium billet inventories were found increased by 35,400 tonnes and then 1,600 tonnes to come in at 136,800 tonnes, as of last Thursday, October 10.

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

The inventories in Wuxi, Jiangsu have dropped by 3,300 tonnes to stand at 19,200 tonnes, while that in Huzhou, Zhejiang; and Nanchang Jiangxi by 4000 tonnes and 2,300 tonnes to come in at 11,000 tonnes and 10,200 tonnes, respectively. In other cities like Foshan, Guangdong; and Changzhou, Jiangsu, the inventories have increased by 800 tonnes to 73,200 tonnes and by 1,300 tonnes to 15,700 tonnes.

Backed on the decline in aluminium billet inventories, the price of aluminium alloy (A356) has registered a growth of RMB 10 per tonne to RMB 14,700 per tonne, found Shanghai Metals Market. The prices of aluminium alloys (ADC12) and aluminium alloy (A380), however, have not recorded any changes from their respective prices of RMB 14,150 per tonne and RMB 15,000 per tonne.