June 11 News:
According to SMM statistics, on June 11, the inventory of aluminum ingots in Guangdong was 189,000 mt; in Wuxi, it was 111,000 mt; and in Gongyi, it was 44,500 mt. The total inventory across these three locations was 344,500 mt, a decrease of 11,900 mt from the previous trading day. The core driver of destocking lies in the continued tightness on the supply side. Strategic adjustments by aluminum smelters in multiple northern regions and some aluminum smelters in south-west China have led to a MoM decline in casting ingot volumes. Coupled with the consistently low volumes of aluminum ingots in transit and actual arrivals in major consumption areas, this has collectively resulted in a tight supply of circulating goods. Although there are expectations of a slight increase in shipments from north-west China and inter-regional transfers due to price spreads, the short-term increase has not yet caused significant pressure. It is necessary to monitor whether there will be a notable increase in arrivals in east China in the future. Meanwhile, the resilience of the consumption side (particularly in east China) has effectively absorbed the recent lower supply. Looking ahead, it is expected that inventory will continue to decline under the support of low arrival volumes in the short term.
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