29 MARCH 2016Shanghai Metal Market
Where is peak for China aluminium inventory in H1 2016?
Edited by : AL CIRCLE
1 min read
Aluminium stocks in China’s five major markets grew steadily after the Chinese Lunar New Year holiday, and reached 928,000 tonnes as of March 15. Could this figure mark the peak for first half of this year?
The answer is yes, says SMM aluminium analyst Liu Xiaolei. In fact, the turning point has already emerged, with stocks down to 913,000 tonnes as of March 17, and stocks have been falling ever since.
Higher costs from rising alumina and coal prices will deter massive capacity restarts. And tight bank lending will also curtail release of new capacity, Liu explained.
In conclusion, SMM sees capacity restarts and new capacity release not enough to fill in supply gap from previous production cuts.
The answer is yes, says SMM aluminium analyst Liu Xiaolei. In fact, the turning point has already emerged, with stocks down to 913,000 tonnes as of March 17, and stocks have been falling ever since.
Higher costs from rising alumina and coal prices will deter massive capacity restarts. And tight bank lending will also curtail release of new capacity, Liu explained.
In conclusion, SMM sees capacity restarts and new capacity release not enough to fill in supply gap from previous production cuts.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
About 43% of Chinese aluminium smelters see aluminium prices rise this week
Next articleMCX Aluminium up by 0.1% on rising demand
Grow with
AL Circle
