June 10 News:
According to SMM statistics, on June 10, the inventory of aluminum ingots in Guangdong was 194,900 mt; in Wuxi, it was 115,000 mt; and in Gongyi, it was 46,500 mt. The total inventory across these three locations was 356,400 mt, a decrease of 1,000 mt from the previous trading day. The core driver of destocking lies in the continued tight supply at the supply side. Strategic adjustments by aluminum smelters in multiple northern regions and some electrolytic aluminum smelters in the southwest have led to a MoM decline in casting ingot volumes. This, combined with the consistently low volume of aluminum ingots in transit and actual arrivals in major consumption areas, has jointly 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 destock under the support of low arrival volumes in the short term.
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