SHANGHAI, Sep 1 (SMM) – The followings are the latest aluminium ingot and billet social inventories.
Aluminium ingot: The aluminium ingot social inventories across China’s eight major markets totalled 683,000 mt as of September 1, up 4,000 mt from a week ago, but 66,000 mt lower than in the same period last year. The figure was 5,000 mt higher than that at the beginning of August. The inventory in Wuxi added 16,000 mt on a weekly basis to 216,000 mt, the major contributor to the overall growth. Some cargoes from transferred from Foshan to east China last week, which has been reflected in the inventory in east China. The inventory in Foshan dropped 9,000 mt to 170,000 mt. Some downstream producers in Gongyi purchased on dips after aluminium prices fell, allowing the local inventory to drop 4,000 mt. As the production of aluminium smelters in Sichuan is unlikely to recover to level seen prior to the power rationing in September, any further accumulation of the social inventory should be small. The market shall closely watch whether the demand recovery in the traditional peak season will be strong enough to adsorb the excessive inventory.
Aluminium billet: The domestic aluminium billet social inventories decreased by 500 mt on a weekly basis as of September 1. Except for Foshan, all the other regions saw a decline in the inventories. Small-scale restocking activities were reported following the decline in aluminium prices. Low willingness to purchase due to poor orders, coupled with increased arrivals, pushed up the inventory in Foshan. The inventory in Wuxi dropped 400 mt as fewer cargoes arrived. The destocking in Changzhou and Huzhou may hardly sustain. Aluminium smelters in Sichuan are now gradually resuming their production after the power rationing has been loosened. The weekly shipments out of warehouses in the major markets declined 1,500 mt. Considering that the orders of downstream enterprises have shown no significant improvement, the aluminium billet inventory is unlikely to keep falling.
