China’s primary aluminium ingot inventory plunges 11,000 tonnes W-o-W on September 8

According to the Shanghai Metals Market, primary aluminium inventories in China witnessed a decrease of 11,000 tonnes week-on-week across eight major consumption areas, including SHFE warrants. Therefore, on Thursday, September 8, the inventories totalled 672,000 tonnes, which in comparison with the month’s first Monday, September 5, shrunk by 9,000 tonnes. As of now, the inventories in September dropped by 73,000 tonnes as recorded in the same period last year.

Wuxi, Foshan and Gongyi were all subjected to small-scale destocking. Though the market sell-out in China’s Gongyi had downsized this week, but some downstream companies began to stockpile due to the upcoming Mid-Autumn Festival, resulting in a mild inventory drop. Output cut in Sichuan was the reason for inventory decline in Foshan which is estimated to stay for the entire month of September with no signs of change on such short notice.

Last week, on September 1, primary aluminium inventories fell by 1,000 tonnes from the week before on Monday across eight major consumption areas to come in at 683,000 tonnes.

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

The aluminium ingot inventories plummeted in Wuxi and Nanhai by 4,000 tonnes, whereas Gyongi and Tianjin saw a fall of 2,000 tonnes week-on-week. Chongqing’s ingot inventory fell by 1,000 tonnes from the data of Thursday, September 1. In Shanghai and Linyi there has been no recorded change, with inventories being stuck at 37,000 tonnes and 17,000 tonnes, respectively.

Meanwhile, primary aluminium inventories in Hangzhou escalated by 2,000 tonnes to rest at 64,000 tonnes. No other provinces in China recorded augmenting data other than Hangzhou.